The US Department of Interior Is Planning to Build a Dam

question 2

Essay

The U.S. Department of Interior is planning to build a dam and construct a hydroelectric power plant. In
addition to producing electric power, this project will provide flood control, irrigation, and recreational
benefits. The estimated benefits and costs expected to be derived from the three alternatives under
consideration are listed as follows: The interest rate is 5%, and the life of each project is estimated to be 40 years.
(a) Find the benefit-cost ratio for each alternative.
(b) Select the best alternative, according to BC(i).

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Definitions:

Cured

Completely remedied or healed from a disease or condition.

Internal Locus

The belief that one has control over life events and outcomes, as opposed to external forces having that control.

Self-serving Bias

The tendency to attribute positive events to one's own character but attribute negative events to external factors.

Unconditional Regard

A concept in psychology that refers to accepting and supporting someone regardless of what they say or do, typically used in the context of therapeutic relationships.