Every public works project to have benefit-cost ratio of at

Reference no: EM13388306

A state government is considering construction of a flood control dike having a life span of 18 years. History indicates that a flood occurs every 6 years, on average, and causes $700,000 in damages on each occasion. If the stateuses a MARR of8% per year and expects every public works project to have a benefit-cost ratio of at least 1.0, what is the maximum investment (to the nearestwhole dollar) that will be allowed for the dike?

Reference no: EM13388306

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