In The Development Of A Publicly Owned Commercial Waterfron Area Three Possible Inde 1069377

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In the development of a publicly owned, commercial waterfronarea, three possible independent plans are being considered. Theircosts and estimated benefit are as folows:

Plan

PW ($000s)

BenefitCostA123,000139,000B

135,000

150,000C99,000114,000

(a) Which plan(s) should be adopted, if any, if controllingboard whished to invest any amount required.

(b) Suppose that 10% of the costs of each plan are classified asdisbenefits. What percentage change in the B-C ratio of each planresults from the reclassification? Comment on your answer (rankchange or not).