Please solve all parts and show work. Use formulas not excel. Thank you ...
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Please solve all parts and show work. Use formulas not excel. Thank you
Preblem 7 A small dam is being planned for a river tributary that is subject to frequent flooding. From past experience, the probabilities that water flow will exceed the design capacity of the dam during a year, plus relevant cost information, are as follows: Flow During a Year Dam Design Independent for Design Capacity FlowDuringaYr Flous Eced Estimated Annual Probability of reater Damages if Water Flows Exceed Capital Investment (S) different years) 0.055 0.045 0.035 0.04 0.02 (S 2.300.000 1,800,000 1,300,000 950,000 1.750,000 1,650,000 2.200,000 2.500,000 2,800,000 The life of the dam is expected to be 48 years, with negligible salvage value. The capital will cost 8% per year compounded semi-annually. Determine which design should be implemented. (Ofint Calculate the expected total annual costs throughout the 50-year period, including the annual worth of the capital investment)
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