A flood control reservoir project and channel improvement project are proposed for reducing flood damages along a stream in an urban area. Estimated costs are as follows: Dam and reservoir project Channel improvement project Initial investment $1,500,000 $1,200,000 Annual maintenance $10,000/yr $5,000/yr Hydrologic, hydraulic and economic studies have been conducted to develop the following relationships for the river reach and flood plain: (a) annual exceedance probability versus peak discharge with and without the reservoir, (b) discharge versus stage with and without the channel improvement, and (c) stage versus damage Annual Peak discharge Stage (ft) exceedance (cfs) probability Without With Discharge reservoir reservoir (cfs) Without With Stage Damage project project (ft) million) 0.50 3,000 2,700 0 0 0 9 0.0 0.20 5,400 0.10 7,600 4,200 3,500 5,000 10. 7 10 0.2 10,000 15° 11 15 1.1 0.05 10,400 5,500 15,000 20 14 20 2.2 0.02 0.01 19,000 0.005 24,000 20,000 15,000 8,600 20,000 23 17 25 3.8 14,000 25,000 25 19 28 5.0 30,000 27 22 30 6.6 0.002 31,500 29,500 35,000 28 24 Perform an economic evaluation of the following alternative plans using a 40- year period of analysis and 10 percent discount rate. Determine the net benefits and benefit-to-cost ratio for each plan. Select the economically optimum plan. - construct the reservoir project Plan 1 - no action Plan 2 Plan 3 Plan 4 - construct the channel improvement project - construct both the reservoir and channel improvement projects
A flood control reservoir project and channel improvement project are proposed for reducing flood damages along a stream in an urban area. Estimated costs are as follows: Dam and reservoir project Channel improvement project Initial investment $1,500,000 $1,200,000 Annual maintenance $10,000/yr $5,000/yr Hydrologic, hydraulic and economic studies have been conducted to develop the following relationships for the river reach and flood plain: (a) annual exceedance probability versus peak discharge with and without the reservoir, (b) discharge versus stage with and without the channel improvement, and (c) stage versus damage Annual Peak discharge Stage (ft) exceedance (cfs) probability Without With Discharge reservoir reservoir (cfs) Without With Stage Damage project project (ft) million) 0.50 3,000 2,700 0 0 0 9 0.0 0.20 5,400 0.10 7,600 4,200 3,500 5,000 10. 7 10 0.2 10,000 15° 11 15 1.1 0.05 10,400 5,500 15,000 20 14 20 2.2 0.02 0.01 19,000 0.005 24,000 20,000 15,000 8,600 20,000 23 17 25 3.8 14,000 25,000 25 19 28 5.0 30,000 27 22 30 6.6 0.002 31,500 29,500 35,000 28 24 Perform an economic evaluation of the following alternative plans using a 40- year period of analysis and 10 percent discount rate. Determine the net benefits and benefit-to-cost ratio for each plan. Select the economically optimum plan. - construct the reservoir project Plan 1 - no action Plan 2 Plan 3 Plan 4 - construct the channel improvement project - construct both the reservoir and channel improvement projects
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Transcribed Image Text:A flood control reservoir project and channel improvement project are proposed for reducing flood
damages along a stream in an urban area. Estimated costs are as follows:
Dam and reservoir project
Channel improvement project
Initial investment
$1,500,000
$1,200,000
Annual maintenance
$10,000/yr
$5,000/yr
Hydrologic, hydraulic and economic studies have been conducted to develop the following
relationships for the river reach and flood plain: (a) annual exceedance probability versus peak
discharge with and without the reservoir, (b) discharge versus stage with and without the channel
improvement, and (c) stage versus damage
Annual
Peak
discharge
Stage (ft)
exceedance (cfs)
probability Without With Discharge
reservoir reservoir (cfs)
Without With Stage Damage
project project (ft)
million)
0.50 3,000 2,700
0
0
0
9
0.0
0.20 5,400
0.10 7,600 4,200
3,500
5,000
10.
7
10
0.2
10,000
15°
11
15
1.1
0.05
10,400 5,500
15,000
20
14
20
2.2
0.02
0.01 19,000
0.005 24,000 20,000
15,000 8,600
20,000
23
17
25
3.8
14,000
25,000
25
19
28
5.0
30,000
27
22
30
6.6
0.002 31,500 29,500
35,000
28
24
Perform an economic evaluation of the following alternative plans using a 40-
year period of analysis and 10 percent discount rate. Determine the net benefits
and benefit-to-cost ratio for each plan. Select the economically optimum plan.
- construct the reservoir project
Plan 1
- no action
Plan 2
Plan 3
Plan 4
- construct the channel improvement project
- construct both the reservoir and channel improvement projects
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