The globe is facing an increase in water demand resulting in the need for additional agricultural land

Question:

The globe is facing an increase in water demand resulting in the need for additional agricultural land and irrigation water. Elyamany and El-Nashar (2013) provided an illustration of a financial appraisal of four alternative methods of water irrigation in Egypt. They were a traditional system of open canals which allow a high percentage of water dissipation and evaporation, a pipeline with one pump at the canal head, a pipeline with one pump at the head and one pump at the middle, and a lined open canal. Three appraisal methods were used to evaluate the alternatives. They were NPV, IRR and the payback method. All three methods provide the same conclusion and support the decision that the best design alternative was one pump at the intake of the canal.
Questions:
Can you provide some examples of the costs and benefits that would be included in the investment appraisal?
What are the disadvantages of using IRR and payback to evaluate the above alternatives?

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