What is the optimal height for a flood-control dam

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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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