A potential site for a reservoir is being evaluated for two mutually exclusive options: a small water supply reservoir or a large flood control reservoir. Cost and benefit data on the two options are provided below. Interest rate to be used is 10%. Each alternative has an initial cost, an annual operating cost, and an annual benefit. Each alternative also has a mid-life maintenance cost that occurs 20 years after the start of the project.

Structural Analysis
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ISBN:9781337630931
Author:KASSIMALI, Aslam.
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Chapter2: Loads On Structures
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A potential site for a reservoir is being evaluated for two mutually exclusive options: a small water supply
reservoir or a large flood control reservoir. Cost and benefit data on the two options are provided below.
Interest rate to be used is 10%. Each alternative has an initial cost, an annual operating cost, and an annual
benefit. Each alternative also has a mid-life maintenance cost that occurs 20 years after the start of the
project.
Alternative 1 (Water Supply ($
Alternative 2 (Flood Control ($
million))
million))
Initial cost
52
71
Annual operating cost
0.6
0.4
Annual benefit
10
11
Maintenance cost in year
2
20
Lifetime (years)
44
44
Compute PWNB of Alternative 1 and 2
precision guide: [0.000, 0.000]
] •
answer
Compute EUANB of Alternative 1 and 2
precision guide: [0.000, 0.000]
answer
What is the best option using PWNB and EUANB
precision guide: [integer, integer]
]] •
answer
Transcribed Image Text:A potential site for a reservoir is being evaluated for two mutually exclusive options: a small water supply reservoir or a large flood control reservoir. Cost and benefit data on the two options are provided below. Interest rate to be used is 10%. Each alternative has an initial cost, an annual operating cost, and an annual benefit. Each alternative also has a mid-life maintenance cost that occurs 20 years after the start of the project. Alternative 1 (Water Supply ($ Alternative 2 (Flood Control ($ million)) million)) Initial cost 52 71 Annual operating cost 0.6 0.4 Annual benefit 10 11 Maintenance cost in year 2 20 Lifetime (years) 44 44 Compute PWNB of Alternative 1 and 2 precision guide: [0.000, 0.000] ] • answer Compute EUANB of Alternative 1 and 2 precision guide: [0.000, 0.000] answer What is the best option using PWNB and EUANB precision guide: [integer, integer] ]] • answer
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