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Four different ferries are being considered to replace the existing ferry. The options are considered mutually exclusive.

Four different ferries are being considered to replace the existing ferry. The options are considered mutually exclusive. Present worth (in millions) of social benefits and costs are presented in the following table attached.

Which ferry should be chosen?
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Dear student Please find... View the full answer

8440140.xlsx

Ferry PW (Benefits)
1
2
3
4 PW (Costs)
10
9
18
20 NPV
9
5.6
10
15 Calculating the NPV, NPV = PW - PW Cost
Considering, all the aspects, ferry 3 should be selected as it has hightest NPV 1
3.4
8
5

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