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A flood control scheme costs 40 million and averts damage with a present worth of 52 million, while displacing residents at a present worth cost of 6 million. Its conventional ratio is

  • A.1.30
  • B.1.13
  • C.0.87
  • D.1.15

Answer: D

Correct answer: 1.15

\[ \frac{52 - 6}{40} = \frac{46}{40} = 1.15. \] The displacement of residents is a disbenefit - a loss falling on the public rather than an expenditure by the agency - so under the conventional form it is subtracted in the numerator, not added to the 40 million below.

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