In Deserts of Southwestern North America Developers Often Build Houses

question 84

Multiple Choice

In deserts of southwestern North America developers often build houses in dry stream beds and build only minimal subsurface drainage systems to handle a flow of water comparable to the size of the dry stream channel. Is this a reasonable development model in the interest of public safety?

• A) Yes, although flash floods can occur, using the channel size is a reasonable estimate of the maximum flood size.
• B) Yes, any potential flooding catastrophe would be a 100 year flood event and would have adequate warning to evacuate people for safety, so the drainage system is adequate.
• C) No, flash floods can produce high viscosity mudflows that would not be captured by the drainage system and could flow out over the valley, destroying everything in its path.
• D) No, giant rock avalanches could come down the valley covering houses.

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Definitions:

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it’s the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Investment Proposals

Formal plans or suggestions put forward for consideration or discussion, especially one concerning financial investment.

Capital Budgeting

The process of planning and evaluating investments in long-term assets, focusing on projects that will generate future profits.

Required Rate

Typically refers to the minimum return rate needed on an investment, considering risk and funding costs.