The conventional B/C ratio estimate of 2.1 was reported to the County Commissioners for a proposed mosquito control program.The person who prepared the report stated that the health benefits were estimated to be $400,000 per year, and that disbenefits of $25,000 per year were used in the calculation. She also stated that the costs for chemicals, machinery, maintenance, and labor were estimated at $150,000 per year. However, sheforgot to list the cost for initiating the program (trucks, pumps, tanks, etc.). If the project has a 10-year study period and an 8%-per-year discount rate, determine the estimated initial cost.

The National Environmental Protection Agency has established that 2.5% of the median household income is a reasonable amount to pay for safe drinking water. For a median household income of $45,000 per year, what would the health benefits have to be (in dollars per household per year) for the B/C ratio to be equal to 1.5?

A manager wants to compare between two alternatives by the B/C method; if the overall B/C ratio for both alternatives is calculated to be exactly 1.0, which alternative should the manager select? Select one: a. do nothing alternative b. Select both alternatives c. Select the alternative that has the higher cost d. Select the alternative based on the probability to occur

Economics use excel to solve QUESTION 4 Calculate the modified B/C ratio for the following cash flow estimates of a public project at an interest rate of 2% per year. Initial Cost 600,000 Annual Benefits 125,000 Annual Disbenefits 35,470 Annual O&M costs 25,000 Projected life 20

The modified B/C ratio includes maintenance and operation costs and treat them in a manner similar to benefits. Select one: True False

From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. To the People Annual benefits = $105,000 per year Annual disbenefits = $10,000 per year The B/C ratio is The project is_ To the Government First cost = $550,000 Annual cost = $29,000 per year Annual savings: $30,000 per year

Which of the following best describes what an input problem measures? resources/time money taxes production

From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. To the People Annual benefits $115,000 per year Annual disbenefits $10,000 per year = Consequences To the Government First cost = $600,000 Annual cost $33,000 per year Annual savings $30,000 per year The B/C ratio is The project is justified

Why are benefit cost ratios inappropriate for evaluating alternative projects?