At an interest rate of 10 per year compute the conventional


The initial cost of constructing a flood control dam is estimated to be $5 million, with annual upkeep costs of $656993. Annual benefits (e.g., reduced flood damage, agricultural development, and tourism, etc.) are expected to be $1.25 million, whereas the disbenefits from significant ecological and human social changes are expected to be $0.025 million per year. Assume the dam will have a useful life of 50 years. At an interest rate of 10% per year, compute the conventional B-C ratio for this investment, with AW as the equivalent-worth measure.

Solution Preview :

Prepared by a verified Expert
Business Management: At an interest rate of 10 per year compute the conventional
Reference No:- TGS02522086

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)