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A small community has for a number of years owned and operated a refuse collection service, consisting of one truck that is used to
A small community has for a number of years owned and operated a refuse collection service, consisting of one truck that is used to collect refuse once a week. That one truck is wearing out and must be replaced. It also appears that only one truck is no longer adequate and a second truck may have to be purchased. If the second truck is not purchased, the citizens will be asked to burn waste paper in their backyards so as to reduce the amount of refuse collected. There are two options: 1. The old truck is sold and two newer models purchased. This will allow for collection twice per week instead of only once. 2. The old truck will be sold and only one new truck bought, but the citizens of the community will be encouraged to burn the combustible fraction of the refuse in their backyards, thus reducing the quantity of refuse collected. Decide on the alternative of choice using a benefit/cost analysis.
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