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8. A flood control project will have a first cost of $1.4 million with an annual maintenance cost of $40,000 and 10 years of life.

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8. A flood control project will have a first cost of $1.4 million with an annual maintenance cost of $40,000 and 10 years of life. Reduced flood damage is expected to amount to $175,000 per year. Lost income to farmers is estimated to be $25,000 per year. At an interest rate of 6% per year, should the project be undertaken

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