3. A city needs to make improvements to its wastewater treatment system in order to comply with new State regulations. The plant's average discharge is 30 million gallons per day (mgd). Because the regulations are not yet finalized, your cost estimate on the low and high side is $7 million to $18 million. Additional annual costs are between $143,000 and $264,000. Assume a project life of 30 years and a discount rate of 5%. Determine the expected Present Value and its standard deviation. What is the probability that the Expected Present value cost is greater than $16 million? 4. Uncertain market conditions in an inflationary environment make it difficult to predict which discount rate to use for problem 3. The range is between 4% and 8%. Repeat your calculation for problem 3 but use simulation. What is the probability that the Expected Present Value is greater than $12 million? 3. A city needs to make improvements to its wastewater treatment system in order to comply with new State regulations. The plant's average discharge is 30 million gallons per day (mgd). Because the regulations are not yet finalized, your cost estimate on the low and high side is $7 million to $18 million. Additional annual costs are between $143,000 and $264,000. Assume a project life of 30 years and a discount rate of 5%. Determine the expected Present Value and its standard deviation. What is the probability that the Expected Present value cost is greater than $16 million? 4. Uncertain market conditions in an inflationary environment make it difficult to predict which discount rate to use for problem 3. The range is between 4% and 8%. Repeat your calculation for problem 3 but use simulation. What is the probability that the Expected Present Value is greater than $12 million