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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 9% per year over a 20-year study period to determine which alternative should be selected. For analysis purposes only, assume that the benefits of reduced flood damage are available in years 4 11. and 18 of the study period. Retention Pond Channel Initial Cost, $ 880,000 1600,000 92.000 30.000 Annual Maintenance, S/Year Reduced Flood Damage. $ 200,000 600,000 The AB/C ratio is The alternative that should be selected is the Click to selectie

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