Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 1, Problem 1P
a.
To determine
The implicit cost of a ton of greenhouse gas.
a.
Expert Solution
Explanation of Solution
The reduced greehouse gases per year can be calculated as follows.
The reduced greehouse gases per year is 3,100,000.
The implicit cost of a ton of greenhouse gas can be calculated as follows.
The implicit cost of greenhouse gas per year is $387.10 per ton.
b.
To determine
The cost to reduce the total emission by 3% over next five years.
b.
Expert Solution
Explanation of Solution
The reduced greehouse gases per year can be calculated as follows.
The reduced greehouse gases per year is 90,000,000.
The cost to reduce the total emission can be calculated as follows.
The cost to reduce the total emission by 3% over next five years is $340,870,000,000.
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10:55
All iCloud
December 2, 2019 at 10:55 AM
A village has five residents, each of whom has
an accumulated savings of $50. Each villager
can use the money to buy a government bond
that pays 10% interest per year or to buy a
year-old goat, send it onto the commons to
graze, and sell it after one year. The price of
the goat that the villager will get at the end of
the year depends on the amount of weight it
gains while grazing on the commons, which in
turn depends on the number of goats sent
onto the commons, as shown in table below.
Assume that if a villager is indifferent between
buying a bond and buying a goat, the villager
will buy a goat.
Number of goats
Income per goat
($vear
Price per 2-year
old goat (S)
on the commons
80
30
1
2
75
25
3
70
20
65
15
5
55
5
What will be the total village income if each
villager decides how to invest based on his or
her individual self-interest?
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