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Region X always get flooded each year. Estimated loss due to flood is $ 100,000 each year. Consultant has done a study to reduce loss
Region X always get flooded each year. Estimated loss due to flood is $ 100,000 each year. Consultant has done a study to reduce loss affected by flood. Based on study, consultant offers 3 alterntatives. Equivalent Annual Cost of Annual Benefits ALTERNATIVES Expected Annual Flood Damage $ 100,000 Project No Flood Control 0 0 Embankment Construction $ 80,000 $ 112,000 $ 30,000 $100,000 Water Dam Construction $ 5,000 $ 110,000 If you were the consultant, determine these: 1. Maximum Benefit 2. Minimum Cost 3. Maximum Benefits Minus Costs 4. Largest Investment Having An Incremental B/C Ratio Larger Than 1 5. Largest B/C Ratio
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