Neco 2017 Geography Question 5
Practice objective / multiple choice question 5 from the 2017 Neco Geography examination.
A coastal town is prone to flooding. Historical data shows a 4\\% chance each year of a flood that causes average damage of \(150\) million naira. The town can invest in a sea wall costing \(500\) million naira, which reduces the probability of flooding to 0.5\\% per year (damage remains the same). Should the town invest in the sea wall if it uses a 10‑year planning horizon and a discount rate of 5\\% per year? Assume the town aims to minimize the present value of expected losses plus investment cost. Answer Yes or No.
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About This Question
This is Neco 2017 Geography Question 5. It is one of the objective questions from the 2017 Neco Geography examination.
Difficulty level: Hard .
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