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Over the past several years, decommissioned U.S. warships have been tumed into artificial teefs in the oceon by towing them out to sea and sinking

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Over the past several years, decommissioned U.S. warships have been tumed into artificial teefs in the oceon by towing them out to sea and sinking them. The thinieg was that sinking the ship would conveniently dispose of it while providing an artficial reet environment for aquabc lfe. In realty, scme of the sunken ships have released toxins into the ocean and have been costly to decontaminate. Now the U.S. povernment is taking bids to instead dismante and recycle ships that have receetly beef decommissioned (but have not been sunk yet.) Assume that a recently decommissioned aitcraf carrier, the USS Forrestal, is estmaled to contain opproximately 40 tons of recyclabie materials able to be sold for appeoximately $32.3 million. The low bid for dismanting and transporing the ship materials to appropriate taclitios is $33.7 million. Recycling and dismanting the ship would create about 600 jobs for about a year in the Rust Belt. This peogrophic area has been expenencing rocord-high unemployment rates in recent years. Requirement 1, is it morn financially advantageous to sink the ship (assume that it costs approximately $1.2 milion to tow a ship out to sea and sink if) or to Gismantle and fecycle it? Show your calculations. (Enter dollar amounts in miltiens.)

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