cost in S per year and effectiveness measure in items salvag

cost in S per year and effectiveness measure in items salvaged per year service alternatives have been collected: Calculate the cost effectiveness ratio for each alternative.

Solution

As the above snap of solution is incomplete it is assumed that the names of alternatives are are 1,2,3,4

Therefore cost effectiveness ratio would be cost of alternative / no of salvaged items

For alternative 1 CE ratio is 1065/40=$26.63/yr

Alternative 2 CE ratio is 624/34=$18.35/yr

Alternative 3 CE ratio is 1980/82=$24.14/yr

Alternative 4 CE ratio is 306/14=$21.85/yr

The best alternative would be Alternative 2