1. Two alternatives are being considered for a water resources project. Alternative A has a project lifetime of 40 years

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1 Two Alternatives Are Being Considered For A Water Resources Project Alternative A Has A Project Lifetime Of 40 Years 1 (180.55 KiB) Viewed 21 times

1. Two alternatives are being considered for a water resources project. Alternative A has a project lifetime of 40 years. Alternative B has a project lifetime of 30 years. The timeseries of benefits and costs for the projects are provided below. Find the equivalent present value and equivalent annual value for each project, assuming a 4% interest rate. Which project is preferred from an economic perspective? Benefits ($ million) Alternative Year 10 Year 20 Year 30 Year 40 A 10 15 5 3 B 10 14 7 Costs ($ million) Alternative Year 10 Year 20 Year 30 Year 40 A 10 2 B 7 9