Five mutually exclusive alternatives are being considered for providing a sewage- treatment facility. The annual equivalent costs and estimated benefits of the alternatives are as follows: Alternative B Annual Equivalent (in thousands) Cost Benefits $1,050 $1,110 900 $1,810 1,230 $1,390 1,350 $1,500 990 $1,140 Which plan, if any, should be adopted if the Sewage Authority wishes to invest if, and only if, the B-C ratio is at least 1.0.?
Five mutually exclusive alternatives are being considered for providing a sewage- treatment facility. The annual equivalent costs and estimated benefits of the alternatives are as follows: Alternative B Annual Equivalent (in thousands) Cost Benefits $1,050 $1,110 900 $1,810 1,230 $1,390 1,350 $1,500 990 $1,140 Which plan, if any, should be adopted if the Sewage Authority wishes to invest if, and only if, the B-C ratio is at least 1.0.?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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