Which system has the greatest b-c ratio

Reference no: EM131506974

Question: A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following.

a. Which system has the greatest B-C ratio?

b. Which system has the largest incremental B-C ratio (based on differences between alternatives)?

c. Which system should be chosen?

System
1 2 3 4 5

PW of $1,000 $4,000 $4,000 $10,000 $12,000

costs PW of 8,000 8,000 14,000 16,000 24,000
benefits

Reference no: EM131506974

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