Reference no: EM13754707
Suppose the government of a municipality is trying to determine how to deal with pesticide contamination of its water supply. It cants to undertake a benefit-cog analysis of two alternative policy options for controlling pesticides:
• Upgrading its municipal water treatment plant to remove the pesticides, or
• Banning the use of the offending pesticides in the metropolitan area.
Assume that either technique reduces the pesticides to a level that does not adversely affect human health. The costs of these control options are as follows:
• Municipal treatment upgrades: Capital costs S20-million. The new plant is constructed over the course of the initial year. It starts operating at the end of this year. Once the plant begins operation, it has operating costs of SI-million per year. Once constructed, the plant lasts for five years, then must be replaced with a new plant.
• Pesticide ban: Annual operating costs due to substitution of non-toxic methods of controlling "pests" = $3.5-million each year.
Let the discount rate be 5 percent. The municipality's planning horizon is 10 years. Suppose the present value of the benefits of the project are S40-million. Which project should the municipal¬ity adopt?
Assume now that the benefits differ by the type of treatment option chosen. In particular, they remain at a present value of $40-million for the pesticide ban, but there would be additional ben¬efits in the form of less damage to ecosystems from the treatment plant. How high would these benefits have to be each year to make the government indifferent between choosing the treatment nlant or the pesticide ban?
How does monetary policy aim to avoid inflation
: What are the factors that would influence the Federal Reserve in adjusting the discount rate - how does the discount rate affect the decisions of banks in setting their specific interest rates?
|
What is the problem that can be solved by business analytics
: What is the problem that can be solved by business analytics. Provide a specific example where this applies.What kind of data would you need to do this. Where can you find such datasets. Provide an URL if the datasets are available publicly.
|
Summary of the information gathered by the poll
: Select the report of at least 2 polls taken on two different topics. (For example, the percent in favor versus opposed to abortion, the economy, a particular candidate, a certain product, etc. ) Various polls can be found at www.zogby.com or www.rasm..
|
Annualised rate of return to the swiss investor
: Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,000. The exchange rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the exchange rate is 1.324 S..
|
Determine how to deal with pesticide contamination
: How high would these benefits have to be each year to make the government indifferent between choosing the treatment nlant or the pesticide ban - Determine how to deal with pesticide contamination of its water supply. It cants to undertake a benef..
|
Data set perform a manova
: 2. Perform a MANOVA. Using the "Activity 8.sav" data set perform a MANOVA. "Group" is your fixed factor, and LDL and HDL are your dependent variables. Be sure to include simple contrasts to distinguish between the drugs (group variable). In the same ..
|
Discuss the major components of the constitution of the us
: Describe and discuss the major components of the Constitution of the United States?
|
How security management can be applied at the company
: Your CEO has asked you to prepare a report to explain whether or not a security plan is needed, and to clarify how security management can be applied at the company
|
A random sample of 225 homeschooled children
: Home-school has become very popular in the united states, and many colleges try yo sttaract students from this group. evidence suggests that approximately 90% of all homeschooled children attend college. in order to check this claim, a random sample ..
|