5- The Nile Basin countries are considering three flood control projects in Ethiopia. Project A is...

 

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5- The Nile Basin countries are considering three flood control projects in Ethiopia. Project A is a dam. The dam will have recreation and irrigation benefits as well as the flood control benefits. Projects B and C consist of permanent dikes along the river. Facts about the three projects are shown in the following table. Each project has a life of 25 years. The MARR is 10%. Use (a) BCR & (b) IRR method to choose the best project. Project A 52 7.1 0.5 First Cost (millions of $) Annual Benefits (millions of $) Annual Operating and Maintenance Costs (millions $) Project B 32 4.2 0.3 Project C 25 3.3 0.3 5- The Nile Basin countries are considering three flood control projects in Ethiopia. Project A is a dam. The dam will have recreation and irrigation benefits as well as the flood control benefits. Projects B and C consist of permanent dikes along the river. Facts about the three projects are shown in the following table. Each project has a life of 25 years. The MARR is 10%. Use (a) BCR & (b) IRR method to choose the best project. Project A 52 7.1 0.5 First Cost (millions of $) Annual Benefits (millions of $) Annual Operating and Maintenance Costs (millions $) Project B 32 4.2 0.3 Project C 25 3.3 0.3

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ANSWER It shall be noted that Project A Project B and Project C have a life span of 25 years MARR 10 Under IRR Internal rate of return IRR is estimated such that the present value of the net cash infl... View the full answer