nunicipal solid-waste site for a city must be located at Site A or SiteB. After sorting, some of the id wastes will be transported to an electric power plant where it will be used as fuel. ta for the hauling of solid wastes from each site to the power plant are shown in Table below. SITE A 4 kilometers SITE B Average hauling distance Yearly rental fee for solid - waste site Hauling Cost 3 kilometers P5,000 P100,000 P1.50 per m² - km P1.50 per m² - km If the power plant will pay P8.00 per m' of sorted solid waste delivered to the plant, wher ould the solid-waste site be located? Use the city's viewpoint and assume that 200,000 m'of wastes will be hauled to the plant f e year only. What site must be selected? Show your computation and defend your answer. (20 points)

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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2. A municipal solid-waste site for a city must be located at Site A or SiteB. After sorting, some of the
solid wastes will be transported to an electric power plant where it will be used as fuel.
Data for the hauling of solid wastes from each site to the power plant are shown in Table below.
Average hauling distance
Yearly rental fee for solid -
SITE A
4 kilometers
P5,000
SITE B
3 kilometers
P100,000
waste site
Hauling Cost
P1.50 per m - km
P1.50 per m - I
n° - km
If the power plant will pay P8.00 per m of sorted solid waste delivered to the plant, where
should the solid-waste site be located?
Use the city's viewpoint and assume that 200,000 m of wastes will be hauled to the plant for
one year only.
What site must be selected?
Show your computation and defend your answer. (20 points)
Transcribed Image Text:2. A municipal solid-waste site for a city must be located at Site A or SiteB. After sorting, some of the solid wastes will be transported to an electric power plant where it will be used as fuel. Data for the hauling of solid wastes from each site to the power plant are shown in Table below. Average hauling distance Yearly rental fee for solid - SITE A 4 kilometers P5,000 SITE B 3 kilometers P100,000 waste site Hauling Cost P1.50 per m - km P1.50 per m - I n° - km If the power plant will pay P8.00 per m of sorted solid waste delivered to the plant, where should the solid-waste site be located? Use the city's viewpoint and assume that 200,000 m of wastes will be hauled to the plant for one year only. What site must be selected? Show your computation and defend your answer. (20 points)
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