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Unformatted text preview: Assume an interest rate of 8% (both for borrowing and saving) 2. What is better? Use the Future Value Criterion. 2. A project is expected to yield the following cash flows: Year 0 1 2 3 Cost $100 $100 $150 Benefit $200 $250 Estimate the B/C ratio, NPV, IRR, discounted payback, and WMR. The discount rate is 8%. Is the project feasible? 3. Consider that the Provincial Government has to decide between building a new railway or a new highway. The following benefits are important: 1. Environmental Impacts (GHGs) 2. Travel Time The Government determined the following weights: For 1: 30%; For 2: 70% Estimate the weighted CE ratio using the data below: Category Highway Railway Environmental Impacts (tonne of GHGs reduced per capita) 2 5 Time (travel time, in hours, reduced per trip) 3 2 Costs (millions) 500 800...
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- Winter '09