An environmental engineer is evaluating an option to construct a secondary containment structure around a hydrocarbon processing unit. The first level of containment cost a total of $9 million, and the second levee is expected to have the same cost. The first level of containment is expected to have a reliability of 0.94, and the second level will function as an independent parallel component in the hydrocarbon spill prevention system. If the damages avoided by preventing a hydrocarbon spill are $150 million, what is the benefit-cost ratio of constructing a redundant containment structure?

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
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Chapter2: Loads On Structures
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An environmental engineer is evaluating an option to construct a secondary containment structure around a hydrocarbon processing unit. The first level of containment cost a total of $9 million, and the second levee is expected to have the same cost. The first level of containment is expected to have a reliability of 0.94, and the second level will function as an independent parallel component in the hydrocarbon spill prevention system.

If the damages avoided by preventing a hydrocarbon spill are $150 million, what is the benefit-cost ratio of constructing a redundant containment structure?

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