Reconsider the county commissioner’s evaluation of three projects in Problem 14. Take the facts as given, except now suppose the commissioner can commit the county to renewing these investments, even if a different commissioner is elected. So, after 4 years in project A, the road would be renewed with gravel or perhaps even paved. After 6 years, the water-retention dam could be dredged and renewed, or a new dam could be built.

After 10 years, the RV hookups could be modernized and replaced.

a. What are the considerations in selecting the appropriate planning horizon in this case?

b. Of the ten principles, which one(s) is well illustrated by this problem?

c. Of the systematic economic analysis technique’s seven steps, which one(s) is well illustrated by this problem?