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Question: Five mutually exclusive alternatives are being considered for providing a sewage-treatment facility (STF). The annual equivalent costs and estimated benefits of the alternatives are as follows:

Annual Equivalent (in thousands)

Alternative Cost Benefits

A $1,050 $1,110

B 900 810

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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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92315744

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