ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
COST-EFFECTIVENESS ANALYSIS EXERCISE
2
3
Consider three mutually exclusive locations, A, B, and C, for a new landfill. The discounted accumulated social costs are respectively 100, 120, 150 m.u. Benefits are counted in terms of the average time savings, compared to the old landfill, which are respectively 1, 1.1, and 0.9 hours per day. Estimate the relevant Cost-Effectiveness Ratio (CER) and rank the locations accordingly
4
5
ANSWER:
6
Most desirable location: ______ , CER: ______
7
Second most desirable location: ______ , CER: ______
8
Least desirable location: ______ , CER: ______
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100