Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 6

Consider three investment projects, A1, A2, and A3. Each project has the same service life, and the present worth of each component value (B, I, and C ) is computed at 10% as follows:
TABLE 8
(a) If all three projects are independent, which projects would be selected based on BC ( i )
(b) If the three projects are mutually exclusive, which project would be the best alternative Show the sequence of calculations that would be required to produce the correct results. Use the B/C ratio on incremental investment.