B−C Analysis with Unequal Project Lives
Two mutually exclusive alternative public-works projects are under consideration.
Their respective costs and benefits are included in the table that
follows. Project I has an anticipated life of 35 years, and the useful life of Project II
has been estimated to be 25 years. If the MARR is 9% per year, which, if either,
of these projects should be selected? The effect of inflation is negligible.