Question: ering three programs to rebate for the s (25 points) (Based on a problem by Blank) on Supervisor of a local water utility that is
ering three programs to rebate for the s (25 points) (Based on a problem by Blank) on Supervisor of a local water utility that is considering three conservation. Program A involves providing customers a wsh tet, which is expected to cost the agency an ave customers $1.50 per household per you are the Water Conservation instalation of an ultralow- household. This program is expected to save uiding customers a rebate to replace their lawns with more drought tolerant Program B involives customers vegetat or 50 per household. hthe installation of a new irrigation system. Program B would cost the tal ibe expected customer saving of this program is estimated at $11.50 per wit ag ency an household per month eted public information campaign to educate and inform customers on ways m C involve water. The program is expected to cost $800 per household and the expected savings s a targ can con serve water. is anticipated to be $13 per household per month. using a study period of 5 years and an a) The worthiness of each program using the B/C ratio (include the cash flow diagrams and eliminate f 6% p.a unded monthly, determine: any alternative(s) that is/are not worthy for further consideration) b) For those alternatives that are worthwhile from part a, which program, if any, should be chosen by ility using the incremental B/C method. Draw the incremental cash flow diagram
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