A county govermment has constructed a small dam across a local river in order to control flooding and regulate river flow downstream. However, although the dam has significantyreduced the cost of flooding that used be incurred by the community from what used to be frequent floods, the dam has also eaten-up some of the farmland upstream of the river, thuscausing loss of revenue from farming and other related businesses. In performing a benefit-cost analysis of the dam project, which of the folowing is the most traditional form ofcalculating the B-C ratio for this project?OAPW(Reduced flood conts) - PW(Loss of revenue from farming and related businesses)Initial project costs + PW(Annual O &M Costs)B-CPW(LOss of revenue from farming and related businesses) - PWIReduced flood conts)Initial project costs PW(Annual O & M Costs)OB.B-CePW(Reduced flood costs)Initial project costs + PW(Annual O & M Costs) PW(Loss of revenue from farming and related businesses)Oc.B-C-D.B-C=PW(Reduced flood costs) - PW(Loss of revenue from farming and related businesses)Initial project costs + PW(Annual O& M Costs)

A Benefit Cost Ratio (BCR) is defined as an indicator which portrays the relationship between the…

A county govemment has constructed a small dam across a local river in order to control flooding and regulate river flow downstream. However, athough the dam has significanty reduced the cost of flooding that used be incurred by the community from what used to be frequent floods, the dam has also eaten-up some of the farmland upstream of the iver, thus causing loss of revenue from farming and other related businesses. In performing a beneft-cost analysis of the dam project, which of the following is the most tradtional form of calculating the B-C ratio for this project?

A county govemment has constructed a small dam across a local river in order to control flooding and regulate river flow downstream. However, athough the dam has significanty reduced the cost of flooding that used be incurred by the community from what used to be frequent floods, the dam has also eaten-up some of the farmland upstream of the iver, thus causing loss of revenue from farming and other related businesses. In performing a beneft-cost analysis of the dam project, which of the following is the most tradtional form of calculating the B-C ratio for this project?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2.4CE

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