A school is overcrowded and there are three options. The do-nothing alternative corresponds to continuing can be expanded, or a new school can be built to "split the load" between the schools. User benefits come from improvements in school performance for the expanded or new schools. If a new school is built, there are more benefits because more students will be able to walk to to use modular classrooms. The school school, the aver- age distance for those who ride the school buses will be shorter, and the schools will be smaller and more "student friendly." The disbenefits for the expanded school are due to the impact of the construction process during the school year. The interest rate is 8%, and the life of each alternative is 20 years. Which alternative should be chosen? What is the incremental ratio for the preferred alternative? New School Alternative Expand 3.1 2.1 User benefits ($M/yr) 0 0.8 User disbenefits ($M) 10.4 8.8 First cost (SM) Operations and mainte- (SM/yr) 1.7 0.95 nance (a) Use the benefit-cost ratio. (b) Use the modified benefit-cost ratio. (c) Use the public/government version of the B/C ratio. (d) Assume these numbers apply to a and use a present worth index. private firm (e) Are your recommendations for (a) through (d) consistent? Which measure gives the largest value? Why? (f)Describe the ethical issues involved in the overcrowded schools dilemma in terms of stakeholders and impacts