All costs are given in thousands of dollars and negligible


Several alternative projects involving water supply system are under consideration by the Public Utility Board. The collected data have been summarized as follows (in 1,000s):
Alternatives A B C D E
First Cost $2,000 $100 $700 $1,200 $400
Annual Operating Cost $70 $4 $60 $100 $30
Annual Recreation Benefits $150 $0 $55 $170 $25
Annual Agricultural Benefits $200 $30 $50 $160 $90

All costs are given in thousands of dollars and negligible salvage values are assumed at the end of a 50-year life. Using a social interest rate of 8% in the Benefit/Cost analysis, determine which project(s) should be selected if the alternatives are mutually exclusive?

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Econometrics: All costs are given in thousands of dollars and negligible
Reference No:- TGS0568008

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