Review problem on the floodproofing

Assignment Help Other Subject

Reference no: EM132165064

Question: A factory building is located in an area subject to occasional flooding by a nearby river. You have been brought in as a consultantto determine whether floodproofing of the building is economically justified. The alternatives are as follows:

A. Do nothing. Damage in a moderate flood is $10,000 and in a severe flood, $25,000.

B. Alter the factory building at a cost of $15,000 to withstand moderate flooding without damage and to withstand severe flooding with $10,000 damages.

C. Alter the factory building at a cost of $20,000 to withstand a severe flood without damage. In any year the probability of flooding is as follows: 0.70, no flooding of the river; 0.20, moderate flooding; and 0.10, severe flooding. If interest is 15% and a 15-year analysis period is used, what do you recommend?

Reference no: EM132165064

Questions Cloud

Identify best practices and measures the organization : Research on any article or situation of your choice related to Application Security identifying threats or breaches as well as best practices and future trends.

What is the post-tax cost of debt for the newly-issued bonds : XYZ Company is undergoing a major expansion. The expansion will be financed by issuing new 18-year, $1,000 par, 8% annual coupon bonds.

Does the given rule make economic sense : CED 6110: Law and Economics Questions - Courts in tort cases, when deciding on compensation, are not allowed to consider evidence about a victim's income

Write a memo to tie the founder of top shelf shoes : As part of the memo also address the following as they apply to Top Shelf Shoes. Make assumptions about the company product line as necessary.

Review problem on the floodproofing : A factory building is located in an area subject to occasional flooding by a nearby river. You have been brought in as a consultantto determine.

Examine the sustainability best practices : Compare and contrast the business practices of the two organizations and the value they place on sustainability.

Which alternative is best in the given situation : Replace the valve. If the valve is left as it is, the probability of a failure of the valve seats, over the life of the project, is 60%.

Prepare the historical average and standard deviation : Identify the Beta for each stock. In your own words, what conclusion can you draw from the stocks' current and historical beta?

What is the expected annual savings and the expected pw : An energy efficiency project has a first cost of $300,000, a life of 10 years, and no salvage value. Assume that the interest rate is 9%.

User Account

All Pages