There is five alternatives for improvement of a road. Determine which alternative should be chosen if the highway department is willing to invest money as long as there is a B/C ratio of at least 1.00. alternatives Annual Benefits Annual Cost A P900, 000 P1. 000,000 Pl. 300,000 PI. 100,000 P2. 800,000 P2. 100,000 P3, 300,000 P2, 700,000 E P1. 200,000 P3, 400,000
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A: B-C ratio = (Present value of expected return from the project / Present value of expected cost…
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Q: Which of the following DOES NOT agree with the definition/description of Benefit-Cost ratio? A.…
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A: The annual worth of initial cost can be calculated as follows:
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A: We are going to solve this question using Benefit per hour analysis.
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- Is the Benefit-cost analysis a decision-making tool for systematically developing useful information about desirable and undesirable effects of public projects? How?7 A flood control project with a life of 16 years will require an investment of $55,000 and annual maintenance costs of $6,000. The project will provide no benefits for the first two years but will save $26,000 per year in flood damage starting in the third year. The appropriate MARR is 12% per year. What is the modified B-C ratio for the flood control project?The marginal damage cost equation for carbon monoxide (CO) in urban areas is: MDCU = 36E; The marginal damage cost equation for CO in rural areas is: MDCR = 6E.The marginal abatement cost equation for CO is: MAC = 400 - 4E What are the socially efficient individual standards for carbon monoxide? What is the total abatement cost in each area under this scheme? What is the total compliance cost under this scheme?
- Suppose the aggregate MAC function is 100 - 20W and aggregate MD = 5W for a polluting industry. What would the polluting industry's total abatement costs equal if it faced an emissions tax rate equal to 20 dollars per unit emitted? A. 60 B. 20 C. 10 D. 0Three neighboring towns – Marshland, Dampland, and Wetland – all border the same lake. The lake frequently floods causing damage to property in all three towns. Each town would benefit from flood mitigation, but the level of benefits differs. With Z representing the level of mitigation: for Marshland, MB = 3 – Z for Dampland, MB = 4 – 2Z for Wetland, MB = 11- Z The marginal cost of flood mitigation is MC = 2 + 12Z Questions: ***Please Note*** Previous Expert Calculated: Z = 16/3 as the Solution to (a) Math Solver Calculates: Z = 1 ***Please Resolve*** (a) What is the socially optimal level of Z? (b) What would each individual town be willing to pay for this level of flood mitigation? (c) The representative from Wetland proposes that each town pay an equal share for the optimal level of flood mitigation. Would…Define cost-benefit analysis (Select measurement and measure old cost/benefitelements upon evaluating public expenditures)
- A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus isnonrival andnonexcludable . Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $61,110. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,240 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20. The benefit of the beautification initiative, as suggested by the survey, is . Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of…Which of the following statements is true? a. It is good to shift perspective when quantifying costs and benefits b. Your viewpoint should only be as broad as those who pay the costs. c. When the costs of a municipal project are contributed by the provincial government, you should base your analysis on the viewpoint of the municipality. d. When the costs and benefits are confined to a town, the town's viewpoint is the best viewpoint for analysis.Describe the difficulties involved in the public-project analysis?
- Reconsider again the previous health insurance question. Of the choices below, which one is closest to the spread between the minimum possible number of reports and the maximum possible reports to achieve the company’s desired outcome? a. 10. b. 4. c. 6. d. 0.Compare and contrast the following concepts and indicate their implications to the provison of public transit: Convention economies of scale vs Mohring economies in the context of public transportation costsThere are five independent projects available to be financed by a certain public institution. The following table shows the annual equivalent benefits and costs of each one: a) the institution wishes to invest money as long as the conventional B/C ratio is at least equal to one. Which alternative should be selected for funding? b) What is the order of the projects, from best to worst?