Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism.The university is now considering several alternative levels of crime control.This table shows the expected annual costs and benefits of these alternatives. Refer to the above information.Based on cost-benefit analysis,Waybelow should undertake:
A) Level Two.
B) Level Three.
C) Level Four.
D) Level Five.

Question

Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism.The university is now considering several alternative levels of crime control.This table shows the expected annual costs and benefits of these alternatives.  Refer to the above information.Based on cost-benefit analysis,Waybelow should undertake:
A) Level Two. 
B) Level Three. 
C) Level Four. 
D) Level Five.

Quizplus · Accepted Answer

According to cost-benefit analysis, the best option is the one that yields the highest net benefit (total benefits minus total costs). Based on the table, Level Four has the highest net benefit of $140,000 ($320,000 - $180,000), which is higher than any other option. Therefore, Waybelow should undertake Level Four to maximize its benefit and minimize its cost.

Waybelow Normal University Has Found It Necessary to Institute a Crime-Control