A state government is considering construction of a flood control dike having a life span of 15 years. History indicates that a flood occurs every five years and causes $600,000 in damages, on average. If the state uses a MARR of 12% per year and expects every public-works project to have a B-C ratio of at least 1.0, what is the maximum investment that will be allowed for the dike? Assume that the flood occurs in the middle of each five-year period.
(a) $1,441,000
(b) $643,000
(c) $843,000
(d) $4,087,000
(e) $1,800,000