A dam is to be constructed to provide a storage reservoir for a
flood control project. The table below has descriptions of costs
and benefits for five reservoir capacity options:
Reservoir capacity (acre-feet)
Initial construction costs ($ million)
Average annual O&M cost ($ million)
Average annual benefits ($ million)
50,000
4.5
0.032
0.317
100,000
5.0
0.079
0.761
150,000
8.0
0.127
1.078
200,000
14.0
0.143
1.269
250,000
22.0
0.190
1.332
Assume the project life = 50 years and i = 6%....