The Following Data Are for a Series of Increasingly Extensive

question 229

Multiple Choice

The following data are for a series of increasingly extensive ?ood-control projects. $$\begin{array} { | l | c | c | } \hline & \text { Total Cost per Year } & \text { Total Benefit per Year } \\\hline \text { Plan } A = \text { Levees } & \$ 10,000 & \$ 16,000 \\\hline \text { Plan } B = \text { Small Reservoir } & 24,000 & 36,000 \\\hline \text { Plan } C = \text { Medium Reservoir } & 44,000 & 52,000 \\\hline \text { Plan } D = \text { Large Reservoir } & 72,000 & 64,000 \\\hline\end{array}$$ On the basis of cost-bene?t analysis, government should undertake

• A) Plan D.
• B) Plan C.
• C) Plan B.
• D) Plan A.