Brandon River flows through an urban area. Due to there have been occasional floods caused damage to properties in this area, a flood control project has been proposed. Estimates have been made for two alternative designs, one involving channel improvement (CI) and the other involving a dam and reservoir (D&R). The estimated project life is 50 years and MARR is 8%.

Flood damages are expected to be 780.000 $ per year if the present condition of no flood control (NFC) is continued. The alternative CI will reduce this figure to 200.000 $ and D&R will reduce it to 70.000 $. The initial cost of CI is 3,2 million $ and estimated annual operation and maintenance cost is 50.000 $. The initial cost of D&R is 6,5 million $ and estimated annual operation and maintenance cost is 100.000 $.

D&R alternative has also two types of adverse consequences for the public related to the conservation of natural resources. These negative benefits are as follows: The dam will cause a damage to nearby fisheries; priced at 56.000 $ per year. The reservoir will cause a loss of land for agricultural purposes, priced at 30.000 $ per year. Decide which alternative to choose by B/C analysis.

Please not in excel

a) Use Annual Equivalent Values

b) Use Present Worth Values with unequal service lives as follow:

Alternatives	Service Life
No Flood Control(NFC)	10 Years
Channel Improvement(CI)	15 Years
Dam and Reservoir(DR)	30 Years