Flood damage in the brush creek area averages 7000 annually, Business Economics

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Flood damage in the brush creek area averages 7000 annually

Flood damage in the Brush Creek area averages $7,000 annually. Civil engineers with floodplain expertise have designed a series of small dams to restrain the flow. They will cost $25,000 and will involve annual maintenance charges of $500. What is the anticipated benefit/cost ratio if the interest rate is 6 %, the service life is 10 years, and the salvage value is $5,000?

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Business Economics: Flood damage in the brush creek area averages 7000 annually

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