Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. the guard rail will cost $70,000. the average damage done to vehicles that slide off the road at the curve is $10,000. it is expected that the guard rail will prevent 5 vehicles from sliding off the road during its usable life. what should the county do?

do not Install guard rail because the guard rail cost exceed the expected benefits

Explanation:

given data

guard rail cost = $70,000

average damage = $10,000

guard rail  prevent = 5 vehicles

to find out

What should the county do

solution

we know here guard rail cost  is  $70,000

but expected benefits = $10,000 × 5

expected benefits = $50,000

so we can say that do not Install guard rail because the guard rail cost exceed the expected benefits

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