Share
Explore BrainMass

Finance-Benefit Cost

Six approaches have been proposed to address a possible epidemic situation. There is only time and resources to implement one of these. The data is shown below. Supply the decision makers with information to assist in their choice.
Proposal Cost of Treating 100 Patients 1000s of Patient lives saved.
A $120,000 75
B $135,000 70
C $115,000 82
D $112,000 80
E $75,000 65
F $80,000 72

The government is considering undertaking four projects. These projects are mutually exclusive, and the estimated present worth of their costs and the present worth of their benefits are shown below in millions of dollars. All of the projects have the same duration. Assuming that there is no do-nothing alternative, which alternative would you select using a B/C approach?

Projects PW of Benefits PW of Costs
A1 $40 $85
A2 150 110
A3 70 25
A4 120 73

Solution Preview

Six approaches have been proposed to address a possible epidemic situation. There is only time and resources to implement one of these. The data is shown below. Supply the decision makers with information to assist in their choice.

Proposal Cost of Treating 100 Patients 1000s of Patient lives saved.
A $120,000 75
B $135,000 70
C $115,000 82
D $112,000 80
E $75,000 65
F $80,000 ...

Solution Summary

The benefit costs for finance are examined.

$2.19