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Three public investments alternatives are available: A1, A2 and A3

Economics

Three public investments alternatives are available: A1, A2 and A3. Their respective total benefits, costs, and first costs are given in present worth as follows: These alternatives have the same service life. Assuming that there is no do nothing alternative, which project would you select using the following

a. NPW

b. Benefit Cost Ratio

c. Profitability Index

d. Incremental Benefit-cost Ratio

e. Incremental Profitability Index

Proposals

Present Worth

A1

A2

A3

B

$400

$700

$500

I

$100

$300

$200

C’

$100

$200

$150

Option 1

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Option 2

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