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 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 is the replacement of turf grass with xeriscape landscaping. This is expected to cost $500 per household, but it will result in an average reduced water cost estimated at $8 per household per month. At a discount rate of 0.5%

per month, use the B/C method to determine which program(s) the utility should undertake if the programs are

(a) mutually exclusive, and

(b) independent.