Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 12

The federal government is planning a hydroelectric project for a river basin. In addition to producing electric power, this project will provide flood control, irrigation, and recreational benefits. The estimated benefits and costs expected to be derived from the three alternatives under consideration are listed in Table.
The interest rate is 10%, and the life of each of the projects is estimated to be 50 years.
(a) Find the benefit-cost ratio for each alternative.
(b) Select the best alternative on the basis of BC( i )
TABLE 12