Five mutually exclusive alternatives are being considered


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: Five mutually exclusive alternatives are being considered
Reference No:- TGS02302573

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