Problem 09.029 - Two alternative comparison One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associated with each alternative are available. Use B/C analysis at a discount rate of 8.00% per year over a 20-year study period to determine which alternative should be selected. For analysis purposes only, assume that the benefits of reduced flood damage are available in years 3.00, 11.00, and 18 of the study period. Initial Cost, $ Annual Maintenance, $/Year Reduced Flood Damage, $ (Round the final answer to four decimal places.) The AB/C ratio is 1.11 The alternative that should be selected is the channel Retention Pond 980,000 92,000 200,000 Channel 2,100,000 30,000 725,000

Problem 09.029 - Two alternative comparison One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associated with each alternative are available. Use B/C analysis at a discount rate of 8.00% per year over a 20-year study period to determine which alternative should be selected. For analysis purposes only, assume that the benefits of reduced flood damage are available in years 3.00, 11.00, and 18 of the study period. Initial Cost, $ Annual Maintenance, $/Year Reduced Flood Damage, $ (Round the final answer to four decimal places.) The AB/C ratio is 1.11 The alternative that should be selected is the channel Retention Pond 980,000 92,000 200,000 Channel 2,100,000 30,000 725,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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