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(4) The Army Corps of Engineers intends to construct a dam on a river that is increasingly prone to flooding. The estimated construction cost
(4) The Army Corps of Engineers intends to construct a dam on a river that is increasingly prone to flooding. The estimated construction cost and average annual benefits are given below. If the interest rate is 7% and the dam life is infinite, what is the best location using (a) incremental benefit/cost analysis? (b) net present worth analysis? (10 points) Site Construction Cost Annual Benefits ($, Millions) ($) A 6 450,000 B 7 570,000 C 3 280,000 D 10 650,000 E 5 380,000 F 11 700,000
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