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4 . 4 Freeport Power and Light Company must select between two possible sites ( Free River and Loco Bend ) for the new power
Freeport Power and Light Company must select between two possible sites Free River and Loco Bend for the new power plant that it is building. The evaluation measures for this site selection are construction cost, in millions of dollars, and environmental impact, measured using a constructed scale with possible levels and Higher levels on this scale are less preferred. The single dimensional value function over cost is exponential over the range $ million to $ million, and the midvalue for this range is $ million.
The value increment for improving from to on the environmental impact evaluation measure scale is the same as the value increment from to and is also the same as the value increment from to The value increment from to is twice as great as the value increment from to The value increment for improving from $ million to $ million on the cost evaluation measure is the same as the value increment for improving from to on the environmental impact evaluation measure.
Siting the power plant at Free River will result in a cost of $ million and an environmental impact of Siting the plant at Loco Bend will result in a cost of $ million and an environmental impact of
i Determine an additive value function over cost and environmental impact that is consistent with the information presented above.
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