Question

Perform a benefit /cost analysis for the following usage cost projects having the same life time...

Perform a benefit /cost analysis for the following usage cost projects having the same life time of 5 years and interest rate of 2% by finding the incremental benefits/costs in steps one after the other. You have to write only the final value of incremental benefits/costs in the required answer field. The three projects have the following values, all calculated in PW form:

Project 1 : benefits = $51,138 and cost =$14,831

Project 2 : benefits = $79,480 and cost =$27,766

Project 3 : benefits = $29,093 and cost =$10,793

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