Based on the information provided, it is difficult to determine which project to recommend without additional information. Here's a breakdown of the given information:
1. Project I: Benefit Cost ratio (BCR) of 1:1.6
The BCR of 1:1.6 indicates that for every unit of cost, the project generates 1.6 units of benefit. While this suggests a positive return on investment, it does not provide a complete picture of the project's financial viability.
2. Project II: Net Present Value (NPV) of US $500,000
The NPV of US $500,000 indicates that the project's expected cash flows, discounted to the present value, result in a positive net value. This suggests that the project's inflows outweigh its outflows, but it does not provide information on the profitability or efficiency of the investment.
3. Project III: Internal Rate of Return (IRR) of 15%
The IRR of 15% is a measure of the project's expected rate of return. It indicates the discount rate at which the project's net present value becomes zero. While a 15% IRR might suggest a positive return, it is not possible to compare this to other projects without considering their IRRs or cost of capital.
4. Project IV: Opportunity cost of US $500,000
The opportunity cost of US $500,000 refers to the value of the best alternative foregone by choosing this project. It does not provide information on the project's financial performance or viability.
Given the information provided, it is not possible to make a definitive recommendation. More details are needed, such as the total project costs, expected cash flows, time horizons, and risk considerations. A comprehensive analysis of each project's financial metrics, including factors such as payback period, return on investment, and sensitivity analysis, would be necessary to make an informed decision.