Question

In: Economics

A school is overcrowded and there are three options. The do-nothing alternative corresponds to continuing to...

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?

(a) Use the benefit-cost ratio.

(b)Use the modified benefit-cost ratio.

(c)Use the public/government version of the B/C ratio.

Solutions

Expert Solution

***please please like this answer so that I can get a small benefit. Please support me. Thankyou***

Rahul Sunny answered 8 months ago
Next > < Previous

Related Solutions

A company has three alternative solutions. 1. Do nothing 2. Rearrange an existing area 3. Build...
A company has three alternative solutions. 1. Do nothing 2. Rearrange an existing area 3. Build an addition to the present area Planning horizon is 5 years. The MARR is 30%. If alternative 1 is chosen, the estimated present worth is $0. If alternative 2 is chosen there is a 60% chance of competition. The estimated PW is $50,000 if there is competition and $30,000 if there is no competition. If alternative 3 is chosen there is 20% chance of...
city of Vallejo, ca  Propose three alternative financing options.
city of Vallejo, ca  Propose three alternative financing options.
A company is considering three options for managing its data processing operation: continuing with its own...
A company is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its own staff and an outside vendor. There are three levels of demand under consideration: high, medium, and low. The annual profit associated with each option (in $1,000) for each level of demand is given below:                                                  Demand Level Staffing Options         High      Medium       Low       Own staff                    ...
Question 1 We have options for changing capacity: - Do nothing, add small facility, or add...
Question 1 We have options for changing capacity: - Do nothing, add small facility, or add large facility - More capacity = higher fixed costs - Lower capacity = higher variable costs - Compare production potential against possible demand Capacity Low Demand Medium Demand High Demand Don’t add $3m $4m $5m Add small $1m $5m $8m Add large ($3m) $3m $13m Question 2 A manufacturer is considering switching vendors to get higher quality inputs. After substantial research, we have gathered...
Ron Miller, owner of Miller Marketing is considering three options for his new product development: continuing...
Ron Miller, owner of Miller Marketing is considering three options for his new product development: continuing with its own staff, hiring an outside vendor to do the managing (outsourcing), or a combination of its own staff and outside vendor. The payoff table is as follows: Decision Alternatives                                           Good economy (S1)         Fair economy (S2)   Poor economy (S3) In house, d1                         60,000                               60,000                         50,000 Outsourcing, d1                   80,000                               80,000                        30,000 Combination, d3                 100,000                              70,000                        10,000 If nothing is known about the demand...
Hudson Corporation is considering three options for managing its data processing operation: continuing with its own...
Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Medium Low Own staff 625 500 400 Outside vendor 850 650...
Hudson Corporation is considering three options for managing its data processing operation: continuing with its own...
Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Medium Low Own staff 650 450 300 Outside vendor 800 600...
Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff,...
Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Medium Low Own staff 650 600 500 Outside vendor 900 650 350...
Hudson Corporation is considering three options for managing its data processing operation: continuing with its own...
Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its staff and an outside vendor. The profit of the corporation depends on future demand. The annual profit of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Median Low Own staff 650 650 600 Outside vendor 900 600 300 Combination 800 650 500...
Once a company has decided to “do something different” (rather than “do nothing” or “do nothing...
Once a company has decided to “do something different” (rather than “do nothing” or “do nothing differently”), what kinds of changes can they make?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT