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Problem 2 (Chapter 10) What is the optimal height for a flood control dam? The government agency uses an interest rate of 5% and a

Problem 2 (Chapter 10) What is the optimal height for a flood control dam? The government agency uses an interest rate of 5% and a horizon of 50 years. Assume the dam has no salvage value after 50 years. 35 m Height 30 m 40 m 45 m 50 m First Cost $10M $1M 14M 1.35M 1.45M 1.50M 18M 12M 16M Annual Benefit 1.2M

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