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12. (20 points) You have two alternatives for improving security at the county jail. Use incremental conventional Benefit/Cost analysis to demonstrate the best economic choice,
12. (20 points) You have two alternatives for improving security at the county jail. Use incremental conventional Benefit/Cost analysis to demonstrate the best economic choice, A or B? (you must show your work to get credit) First Cost, S Annual M&O Costs, $/year Annual Benefits Annual Disbenefits Study Period Social Discount Rate AW of Total Costs: Conventional B/C Ratio: Alternative A 180,000 49,000 110,000 26,000 8 years 7% Alternative B 270,000 64,000 0 160,000 8 years 7% $109,216 1.06 1.46 $79,144
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