Find the net present worths for the dam and the dam plus recreation facilities considered in Review given Problem. Cse a ALARR of 15%. Make a recommendation as to which option should be adopted.
Problem :
The following data are available for a project:
Present worth of benefits €17,000,000
Present worth of opening and maintenance cost €5,000,000
Present worth of capital costs €6,000,000
(a) Find the benefit-cost ratio.
(b) Find the modified benefit-cost ratio.