Three independent projects are available for a secret government agency. The estimated costs associated with each alternative are given below. Use the conventional B-C ratio method to determine which alternative(s), if any, should be selected at an interest rate of 7% per year. Assume a project life of 20 years and a B-C ratio of at least 1 for evaluation
Project A Project B Project C
Initial cost,$ $1,300,000 $1,200,000 $1,450,000
Annual benefits, $/year $490,000 $450,000 $535,000
Annual disbenefits, $/year $310,000 $280,000 $345,000