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A government agency has estimated that a flood control project has costs and benefits that are parabolic, according to the equation: (PW of benefits) -
A government agency has estimated that a flood control project has costs and benefits that are parabolic, according to the equation: (PW of benefits) - 18 * (PW of cost) + 54 = 0 Both benefits and costs are stated in millions of dollars. a. What is the present worth of cost for the project that optimizes the benefit/cost ratio, over the life of the project, rounding to $x.x million? At that optimal level, what is the B/C ratio, rounding to thousandths (x.xxx)? b. What is the present worth of cost for the project that would instead optimize the net present worth
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