A dam may be built at a cost of $10M to eliminate the periodic flooding that Lowville experiences. That flooding averages a cost of $300K per year. Additional expenses can be incurred to divert water to another area for irrigation, to add electric power generation, and to permit recreation. Which alternative is best? Since political support is crucial, allocate the costs to the uses. The interest rate is 5%, and the horizon is 50 years. Calculate a benefit/cost ratio for your recommended alternative.

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Irrigation Recreation Electricity First cost Annual cost Annual benefit $4M $200K $3M 100K 450K ЗОК 500K 50K 850K Irrigation Recreation Electricity First cost Annual cost Annual benefit $4M $200K $3M 100K 450K ЗОК 500K 50K 850K

Answer rating: 100% (QA)

PRESENT VALUE INTEREST FACTOR ANNUITY FOR 5 AND 50 YEAR PVIFA11R N R N50 R0... View the full answer