Which Approach Is NOT Appropriate for Addressing the High Cost

question 9

Multiple Choice

Which approach is NOT appropriate for addressing the high cost of beach replenishment?

• A)trucking in sand from inland locations
• B)moving homes to a safer distance from the coast
• C)allowing the coast to erode land unimpeded
• D)using crushed bottle glass instead of sand
• E)using compacted garbage instead of sand

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Value

Value of cash flows at a future date, taking into account interest accumulated between when the cash flow occurred and the future date.

Double-Declining Balance

An accelerated method of depreciation that doubles the rate at which an asset’s book value declines compared to straight-line depreciation.

Straight-Line Depreciation

A method of allocating the cost of an asset evenly over its useful life.