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.

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 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

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

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 = $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

Why are benefit cost ratios inappropriate for evaluating alternative projects?

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