What is the optimal height for a flood-control dam

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Reference no: EM132165657

Question - What is the optimal height for a flood-control dam? The government agency uses an interest rate of 5% and a horizon of 50 years. Assume that the dam has no salvage value after 50 years.

Height	30 m	35 m	40 m	45m	50 m
First Cost	$10M	12M	14M	16M	18M
Annual Benefit	$1M	1.2M	1.35M	1.45M	1.50M

Reference no: EM132165657

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