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Help me clearly. Thank you (100) Suppose a mualicipal goveminsent is trying o determine how to feduce pesticide contamination of ites water supply. It undentakes
Help me clearly. Thank you
(100) Suppose a mualicipal goveminsent is trying o determine how to feduce pesticide contamination of ites water supply. It undentakes a beeefit-cest aealysis of twe allernative policy options for controlities pesticides: upgrading its municipal warer teteatment plant to temove the pesticides, and bonining the ue of pesticides in the evenicipal area. Both aliematives roduce the pesticides to a level that has no adverse effect en human bealth; thus, cach alternative gencrates benefits aith a toeal present value of 40 million. Tho Eiscont rate is 5%. The municipality's plarning hoeisen is 10 years, iteluding the current year. The eovs profiles for the two alicmatives, it future value terms and in millioes of dellars, are as the bble below, Upgradieg the tecatment plast involves construction cests of $20 million. Once the plant begins operation, which it does ar the start of year 1, it tas eperating eoss of 51 millice per year. Onee construelect, the plant lasts foe fine years, then must be replaced with a new plimt; the new ecenstructice takes place during year 5, the final year of the first plant 's life. Which alsernative should the municigality adopt? (100) Suppose a mualicipal goveminsent is trying o determine how to feduce pesticide contamination of ites water supply. It undentakes a beeefit-cest aealysis of twe allernative policy options for controlities pesticides: upgrading its municipal warer teteatment plant to temove the pesticides, and bonining the ue of pesticides in the evenicipal area. Both aliematives roduce the pesticides to a level that has no adverse effect en human bealth; thus, cach alternative gencrates benefits aith a toeal present value of 40 million. Tho Eiscont rate is 5%. The municipality's plarning hoeisen is 10 years, iteluding the current year. The eovs profiles for the two alicmatives, it future value terms and in millioes of dellars, are as the bble below, Upgradieg the tecatment plast involves construction cests of $20 million. Once the plant begins operation, which it does ar the start of year 1, it tas eperating eoss of 51 millice per year. Onee construelect, the plant lasts foe fine years, then must be replaced with a new plimt; the new ecenstructice takes place during year 5, the final year of the first plant 's life. Which alsernative should the municigality adoptStep by Step Solution
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