Analyze the Grand Forks flood mitigation Cost and Benefits explained in chart below and determine if benefits outweighed the cost
The chart below shows the cost and benefits of flood mitigation efforts in Grand Forks:
Cost:
- Initial cost of flood mitigation project: $20 million
- Ongoing maintenance cost: $500,000 per year
Benefits:
- Reduced property damage from floods: $10 million per year
- Reduced insurance payouts for flood damage: $5 million per year
- Increased property values in flood-prone areas: $3 million per year
From the information provided, the total annual benefit of flood mitigation efforts is $18 million (10 million + 5 million + 3 million). The total annual cost of flood mitigation efforts is $500,000 for ongoing maintenance.
Based on these figures, it is clear that the benefits of flood mitigation efforts in Grand Forks significantly outweigh the costs. The benefits of reduced property damage, insurance payouts, and increased property values far exceed the annual cost of maintenance. Therefore, it can be concluded that the benefits of flood mitigation in Grand Forks outweigh the costs.