A company near a large city is required to keep its smokestack pollution to new lower levels,costing the company $2 million in additional equipment (which will last at least 10 years)and $100,000 a year in additional labor.Lowering the air pollutants in the region is expected to save $4 million in medical expenses in the affected region over the next 10 years.
-Over this 10-year period,the benefit to cost ratio is

Question

Quizplus · Accepted Answer

The total cost includes the initial $2 million for equipment and $100,000 a year for 10 years, totaling $3 million ($2 million + $1 million). The benefit is $4 million in saved medical expenses. Thus, the benefit to cost ratio is 4 to 3.

A Company near a Large City Is Required to Keep