A state department of health is considering a public awareness campaign to encourage vaccination. It determines that the cost of this campaign would be $740,000 per year for the next 6 years. It estimates that the campaign would reduce rates of illness and communicable disease. At the end of the first year of the campaign, the resulting savings would be $1,150,000; the savings would decrease by $100,000 each of the following 5 years. Assuming a discounting factor of 5.5%, compute the benefit cost ratio. Enter your answer with 2 decimal places (e.g., X.xx).

A state department of health is considering a public awareness campaign to encourage vaccination. It determines that the cost of this campaign would be $740,000 per year for the next 6 years. It estimates that the campaign would reduce rates of illness and communicable disease. At the end of the first year of the campaign, the resulting savings would be $1,150,000; the savings would decrease by $100,000 each of the following 5 years. Assuming a discounting factor of 5.5%, compute the benefit cost ratio. Enter your answer with 2 decimal places (e.g., X.xx).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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