The Russian air force is being called on this year to intercept storms advancing

Question

The Russian air force is being called on this year to intercept storms advancing on Moscow and to seed them with dry ice and silver iodine particles. The idea is to make snow drop on villages in the countryside instead of piling up in Moscow. The cost of this initiative will be 180 million rubles, and the savings in snow removal will be in the neighborhood of 300 million rubles. The exchange rate is 30 rubles per dollar. Comment on the hidden costs and benefits of such a plan from the viewpoint of the villagers in terms of dollars.

Explanation / Answer

Cost in Rubles: 180 million rubles.

Cost in $ = 180 /30 = $6 million Rubles

Benefit in Rubles: 300 million

Benefit in $ = 300 / 30 = $10 million

So, the benefit in terms of Saving is $4 million more than the cost associated with the inititive. But while taking decision on the initiative apart from Financial consideration, effect of Dry Ice and silver iodine particles on villagers should also be considered.

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