Question
1. Use the information below to do a cost-benefit analysis assuming a life is worth 6 million dollars and the discount rate is 3% per
1. Use the information below to do a cost-benefit analysis assuming a life is worth 6 million dollars and the discount rate is 3% per year. Would you recommend adoption of the program?
2. Suppose a life is valued at 9 million. Does this change your answer?
| Year | Cost | Lives Saved |
| 1 | 35 | 0 |
| 2 | 27 | 4 |
| 3 | 25 | 5 |
| 4 | 23 | 6 |
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
2nd edition
978-0077403485, 77403487, 73527130, 978-0073527130
