1. Consider the costs and benefits of the following public projects shown in the table. Costs ($) Year 1 Project A 6000 Project B Project C 8000 10000 Year 2 7000 6000 6000 Year 3 4000 4000 N.A....


1. Consider the costs and benefits of the following public projects shown in the table.<br>Costs ($)<br>Year 1<br>Project A<br>6000<br>Project B<br>Project C<br>8000<br>10000<br>Year 2<br>7000<br>6000<br>6000<br>Year 3<br>4000<br>4000<br>N.A.<br>Project B<br>3000<br>Benefits ($)<br>Project A<br>Project C<br>Year 1<br>N.A.<br>N.A.<br>Year 2<br>10000<br>9000<br>6000<br>Year 3<br>8000<br>11000<br>10000<br>(a) For a discount rate of 5%, comment on the assessment of the above projects using<br>benefit-cost ratio of cost-benefit analysis (CBA).<br>(b) If there is only $17500 for conducting the projects, what would you recommend?<br>

Extracted text: 1. Consider the costs and benefits of the following public projects shown in the table. Costs ($) Year 1 Project A 6000 Project B Project C 8000 10000 Year 2 7000 6000 6000 Year 3 4000 4000 N.A. Project B 3000 Benefits ($) Project A Project C Year 1 N.A. N.A. Year 2 10000 9000 6000 Year 3 8000 11000 10000 (a) For a discount rate of 5%, comment on the assessment of the above projects using benefit-cost ratio of cost-benefit analysis (CBA). (b) If there is only $17500 for conducting the projects, what would you recommend?

Jun 06, 2022
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