The following costs and benefits have been listed for a government-built, owned, and operated dam and reservoir that will be used for both flood control and electrical power generation.

The planning horizon is 50 years and \(i=8\) percent.

a. Determine whether or not the project pays for itself if none of the benefits or disbenefits are considered.

b. Determine the \(B / C\) ratio of PW net benefits to PW net costs.

c. Determine the PW value of \(B-C\), and determine if the project is now favorable.

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Dam, including access roads, survey, clearing, and construction: Hydroelectric generator and transmission equipment: Land and right-of-way purchase: Highway relocation: Miscellaneous: Operating and maintenance costs: Annual income to project from paying customers: Annual benefits to public: Reduction in flood losses: Enhancement in property value: $47,000,000 $24,275,000 $3,300,000 $4,200,000 $800,000 5 percent of total investment each year Value (before paying) to customers of having power available: $9,500,000 $1,252,000 $525,000 $11,875,000