The Corps of Engineers compiled the following data to determine which one of two flood control dams should be constructed in a flood-prone resi- dential area. Mountain Valley Flood damage, $/year Disbenefits, S/year 220,000 140,000 30,000 10,000 Costs, S/year 300,000 450,000
The Corps of Engineers compiled the following data to determine which one of two flood control dams should be constructed in a flood-prone resi- dential area. Mountain Valley Flood damage, $/year Disbenefits, S/year 220,000 140,000 30,000 10,000 Costs, S/year 300,000 450,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
If the flood damage estimates for both alternatives were reduced to zero and replaced with benefits of $310,000 per year and $470,000 per year for the
two alternatives, respectively, the B/C ratio for the Valley alternative is closest to:
a. 0.93
b. 1.02
c. 1.23
d. 1.56
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