Hello, i missed my last class that went over how to answer these questions.
Please help me to understand this.
STATEMENT: The EPA is considering an application from the state of Colorado for a large dam project on the Colorado River. The basic costs and benefits of the project (in inflation-adjusted dollar values) are as follows:
Costs Construction costs: $900 million/year first three years
Operating costs: $80 million/year
Agricultural product lost from flooded lands: $65 million/year
Forest products lost from flooded lands: $40 million/year
Revenues from Power Generation: