Consider the cost/benefit ratio, namely (Total Benefits, in )/(Total Costs, in ). One alternative is discounted at
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Consider the cost/benefit ratio, namely (Total Benefits, in )/(Total Costs, in ). One alternative is discounted at an interest rate of 3%; another is discounted at 10%. Develop your own example using at least three alternatives to achieve the same objective. Discuss the effect of the different discount rates on the B/C ratio. Rank specific options by the appropriate ratio. Then, calculate the difference between the discounted benefits and the discounted costs. Do the ranking based on the difference (B-C). Do you reach the same conclusions? What critical assumption governs the use of the B/C ratio to rank alternatives? Discuss in no more than 700 words.
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Environmental And Health Risk Assessment And Management Principles And Practices
ISBN: 95813
2006th Edition
Authors: Paolo Ricci
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