BOT Project.

A flood control dam is planned for economic development. The dam has a perpetual time horizon (100-year lifetime) and requires construction costs of $15m. The gates of the dam have an effective operational life of five years, after which the gates will become ineffective. The cost of gate replacement is $2m, repeated every five years. In addition, annual operational costs are $75K/year. A transfer premium of $1.85m is expected after three years.

1. Using r = 10%/year, find and decompose this projects capitalized worth (annual CW values) using the BOT approach.

2. Summarize your findings in a BOT Table.