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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Transcribed Image Text: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
Annual Equivalent (in thousands)
Cost
$1,050
Benefits
$1,110
B
900
$1,810
C
1,230
$1,390
D
1,350
$1,500
E
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.?
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