A public utility in a medium-size city is considering two cash rebate programs to achieve water conservation. Program 1, which is expected to cost an average of $60 per household, provides a rebate of 75% of the purchase and installation costs of an ultra-low-flush toilet ($100 max). This program is projected to achieve a 5% reduction in overall household water use over a 5-year evaluation period. This will benefit the citizenry to the extent of $1.25 per household per month. Program 2 involves turf replacement with xeric (low water need) landscaping. The program is expected to cost $500 per household, but it will result in reduced water cost estimated at $8 per household per month (on the average). Use the B/C method at a discount rate of 0.5% per month to determine which program, if any, the utility should undertake. The programs may be (a) mutually exclusive, or (b) independent

The cost of a health care project is $5000 per year. The project will start immediately and will run for a total of eight years. Somebody tells you that the total cost of the project is approx. $37360. This person time discounted using a rate of 1% per year time discounted using a rate of 2% per year time discounted using a rate of 3% per year time discounted using a rate of 4% per year

In order to safeguard the public health, environment, public beaches, water quality, and economy of south San Diego County, California, and Tijuana, Mexico, federal agencies in the United States and Mexico developed four alternatives for treating wastewater prior to discharge into the ocean. The project will minimize untreated wastewater flows that have caused chronic and substantial pollution in the Tijuana River valley, Tijuana River National Estuarine Research Reserve, coastal areas used for agriculture and public recreation, and areas designated as critical habitat for federal and state-listed endangered species. If the costs and benefits are as shown, which alternative should be selected on the basis of a B/C analysis at 6% per year and a 40-year project period? All monetary amounts are in $ million units.

A school is overcrowded and there are three options. The do-nothing alternative corresponds to continuing to use modular classrooms. The school can be expanded, or a new school can be built to "split the load" between the schools. User benefits come from improvements in school performance for the expanded or new schools. If a new school is built, there are more benefits because more students will be able to walk to school, the average distance for those who ride the school buses will be shorter, and the schools will be smaller and more "student friendly." The disbenefits for the expanded school are due to the impact of the construction process during the school year. The interest rate is 8%, and the life of each alternative is 20 years. Which alternative should be chosen? What is the incremental ratio for the preferred alternative? Alternative User benefits ($M/yr) User disbenefits ($M) First cost ($M) Operations and maintenance ($M/yr) (a) Use the benefit-cost ratio. (b) Use the…

The public utility in a medium-sized city is considering two cash rebate programs to improve water conservation. Program 1, expected to cost an average of $60 per household, offers a rebate of 75% of the purchase and installation costs of an ultra low-flush toilet ($100 maximum). This programis projected to achieve a 5% reduction in overall household water use over a 5-year evaluation period. This will benefit the citizenry to the extent of $1.25 per household per month. Program 2 is the replacement of turf grasswith xeriscape landscaping. This is expected to cost $500 per household, but it will result in an average reduced water cost estimated at $8 perhousehold per month. At a discount rate of 0.5% per month, use the B/C method to determine which program(s) the utility should undertakeif the programs are (a) mutually exclusive, and (b) independent.

The government of a subtropical country is evaluating the costs and benefits of protecting a rainforest versus cutting it down for timber. The estimated value of the wood is $270$⁢270 million. If the same forest is used as a national park, it may attract 0.030.03 million additional tourists per year. Statistically, each tourist spends $1,600$⁢1,600 inside the country during their stay.How long will it take tourism to exceed the estimated value of the wood in the rainforest? Enter your answer in the box below and round to two decimal places if necessary.

An engineering student has only 45 minutes before the final exam in her Engineering Economy class. She needs help in understanding cost-effectiveness analysis because she knows from the instructor’s review session that a CEA problem will be on the exam. There is time for using only one method of assistance before the exam; she must select well. In a rapid process of estimation, she determines how many minutes it would take for each method of assistance and how many points it might gain for her on the final. The method and estimates follow. Where should she seek help to be most effective? Assistance from Minutes for Assistance Points Gained Teaching assistant (TA) 15 20 Slides on web 20 10 Friend in class 10 5 Instructor 20 15

Assume a pool of 115 people in an insurance pool (a group of people insured through community rating). It is estimated that a small number in the pool will have significant pre- existing conditions as indicated in the table. Based on the age of these 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of Insured Antidipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2.300 $2,400 $2,500 $2,700 $2,000 $2,900 $3,000 $3,100 $3.200 $3.300 $4,000 57,00 $10,000 Everyone joins the poal ad pays the necessary premum in the first year. The clams experience of the customers is faund to be generaly consstent with expeclations of the insurance company. A) What would be the premium In the third year if there is no inflation, based on the company's oxperience from the past year? B) If those customers who have anticipated…

The sheriff of Los Lunas county along the Arizona- Mexico border asked the county to build a new minimum security detention facility for personscaught while attempting to enter the United States illegally. The construction cost will be $22 million, with annual operating costs of $2.1 million. The new facility will create jobs that produce benefits for many local businesses including realtors, restaurants, etc. The benefits are estimated to be $5 million in years 1 and 2, $2.8 million in year 3, and $1.12 million per year beginning in year 4 and continuing through the 30-year life of the facility. At a discount rate of 8% per year, does the conventional B/C ratio indicate that the project is economically justified?