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A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following:

_________________________________________________

_________________________System__________________

__________________1_______2_______3________4_______5

PW of costs______ $1000__ $4000____$4000 ____$10000 __$12000

Pw of benefits______8000___8000_____14000_____16000___24000

_________________________________________________

a. Which system has the greatest B-C ration?

b. Which system has the largest incremental B-C ratio (based on differences between alternatives)?

c. Which system should be chosen?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91350681

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