37. Ten cavemen with a remaining average life expectancy of 10 years use a path from their cave to a spring some distance away. The path is not easily traveled due to 100 large stones that could be removed. The annual benefi t to each individual if the stones were removed is $6. Each stone can be removed at a cost of $1. The interest rate is 2 percent.

a. Compute the benefi t-cost ratio for the individual if he alone removed the 100 stones.

b. Compute the benefi t-cost ratio for the individual if the task was undertaken collectively, with each individual removing 10 stones.

c. What maximum amount may be charged by a manager who organizes the group effort if the minimum acceptable benefi t-cost ratio is 2?