Incremental initial cost (Channel - Retention pond) = 2800000 - 880000 = 1920000
Incremental maint cost (Channel - Retention pond) = 30000 - 92000 = -62000
incremental Flood damage savings (Channel - Retention pond) = 525000 - 200000 = 325000
Incremental B/C = 325000 * [(P/F, 9%,4) + (P/F, 9%,8) + (P/F, 9%,18)] / [1920000 - 62000 * (P/A, 9%,20)]
= 325000 * [0.708425 + 0.501866 + 0.211994] / [1920000 - 62000 * 9.128546]
= 0.34
As incremental B/C is less than 1, retention pond must be selected
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