In: Economics
Three mutually exclusive projects are being consid ered by Sesame Street Productions (SSP). SSP U a MARR of 8%. SSP has heard about your excellent analysis skills and wants you to help them make a decision. Using a B/C analysis, which project do you recommend to SSP? Assume all benefits and costs repeat for Project A.
Project A $300 Initial cost Annual benefits $200 Project life (years) 2 B/C ratio 1.19
Project B $450 Initial cost Annual benefits $190 Project life (years) 4 B/C ratio 1.40
Project C $765 Initial cost ,Annual benefits $300 Project life (years) 4 B/C ratio 1.3