A Payne County commissioner has \($20\),000 remaining in the budget to spend on one of three worthy projects. Each is a one-time investment, and there would be no follow-on investment, regardless of which project is chosen. Project A involves the placement of gravel on a rough and often muddy road leading to a public observatory, providing net benefits (consider this as net revenue-in-kind) of \($8\),000 per year for 4 years at which time the road will again be in disrepair. Project B involves the building of a water-retention dam to hold water during big rains, thereby lessening damage due to flash flooding; the benefits are expected to be worth \($6\),000 for each of 6 years, after which silt will have made the pond ineffective. Project C is to provide water, sewer, and electrical hookups for recreational vehicles at the fairgrounds; net benefits of \($4\),000 per year would be realized for 10 years, after which the system would need to be replaced. No matter which alternative is selected, once its useful life is over, there will be no renewal.

a. What planning horizon should be used in evaluating these three projects?

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?