Florida is considering construction of a flood control dike


Florida is considering construction of a flood control dike having a life span of 16 years. The investment require is $60,00 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 per year in flood damage starting in the third year. The appropriate MARR is 12%.

1. What is the annual value of the investment cost?

2. What is the B/C ratio for this project?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Florida is considering construction of a flood control dike
Reference No:- TGS02249843

Expected delivery within 24 Hours