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determine the present worth alternative A (PW)
Alternative B (PW)
The town council of Cato Springs is considering two alternative investments to upgrade and
expand its spring-fed recreational area. The two investment alternatives ( A and B ) have different
costs and will produce different public benefits. The projected costs and benefits over a 10-year
planning horizon for the two alternatives are given below. Using a MARR of 10.0%, which, if either,
of the alternatives should be pursued by the Cato Springs city council? Determine and rank the
present worth of the costs for the alternatives.

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  • 1. determine the present worth alternative A (PW) Alternative B (PW) The town council of Cato Springs is considering two alternative investments to upgrade and expand its spring-fed recreational area. The two investment alternatives ( A and B ) have different costs and will produce different public benefits. The projected costs and benefits over a 10-year planning horizon for the two alternatives are given below. Using a MARR of 10.0%, which, if either, of the alternatives should be pursued by the Cato Springs city council? Determine and rank the present worth of the costs for the alternatives.