feasibility of constructing a small flood control dam

Reference no: EM13696179

The US army corps of engineers is considering the feasibility of constructing a small flood control dam in an existing arroyo. The initial cost of the project will be $2.2 million, with inspection and upkeep cost of $10,000 per year. in addition, minor reconstruction will be required every 15 years at a cost of $65,000. If flood damage will be reduced from the present cost of $90,000 per year to $10,000 annually. Use the benefit\cost method to determine if the dam will be permanent and the interest rate is 12% per year.

Reference no: EM13696179

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