A privately owned utility is considering two cash rebate programs to achieve wat

Question

A privately owned utility is considering two cash rebate programs to achieve water
conservation. Program 1, which is expected to cost an average of $60 per household, would
involve a rebate of 75% of the purchase and installation costs of an ultralow-flush toilet. This
program is projected to achieve a 5% reduction in overall household water use over a 5-year
evaluation period. This will benefit the citizenry to the extent of $1.25 per household per month.
Program 2 would involve grass replacement with desert landscaping. This is expected to cost
$500 per household, but it will result in reduced water cost at an estimated $8 per household
per month (on average). At a discount rate of 0.5% per month, which program, if either, should
the utility undertake? Use the B/C method.

Explanation / Answer

The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.[2][3][4][5][6][7] Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved.[3][8] Events such as the Great Depression were major factors leading to changes in the system.[9] The Congress established three key objectives for monetary policy—maximum employment, stable prices, and moderate long-term interest rates—in the Federal Reserve Act.[10] The first two objectives are sometimes referred to as the Federal Reserve's dual mandate.[11] Its duties have expanded over the years, and today, according to official Federal Reserve documentation, include conducting the nation's monetary policy, supervising and regulating banking institutions, maintaining the stability of the financial system and providing financial services to depository institutions, the U.S. government, and foreign official institutions.[12] The Fed also conducts research into the economy and releases numerous publications, such as the Beige Book.

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