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The general manager of environmental and engineering services in London, Ontario, is preparing a recommendation regarding the implementation of green bins to collect organic waste from city households. When making this decision, he must consider the costs to the taxpayer to implement this program along with other qualitative issues. The case is written for an engineering economics unit in a general business course for engineering students as an introduction to public-sector decision making.
·Demonstrate how public-sector decisions are often harder to justify than private-sector decisions.Show how net present value can be an effective financial tool to evaluate a project’s capital and operating costs.