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Problem 09.029 Two Alternative Comparison One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates

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Problem 09.029 Two Alternative Comparison One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associated with each alternative are available. Use B/C analysis at a discount rate of 8% per year over a 20-year study period to determine which altenative should be selected. For analysis purposes only, assume that the benefits of reduced flood damage are availlable in years 12, and 18 of the study period. Retention Pond Channel Initial Cost, $ 840.000 1,400,000 ces Annual Maintenance, $/Year 92.000 30,000 Reduced Flood Damage, S 200,000 550,000 The Al/C ratio is The alternatilve that should be selected is the channel

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