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Florida is considering construction of a flood control dike having a life span of 16 years. The investment require is $60,00 and annual maintenance costs
Florida is considering construction of a flood control dike having a life span of 16 years. The investment require is $60,00 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 per year in flood damage starting in the third year. The appropriate MARR is 12%.
1.What is the annual value of the investment cost?
2) What is the B/C ratio for this project?
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