Why should be adopted if sewage authority wishes to invest


Problem

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:

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.?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why should be adopted if sewage authority wishes to invest
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