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A solar panel production factory is located in an area subject to occasional flooding. You have been brought in as a consultant to determine whether

A solar panel production factory is located in an area subject to occasional flooding. You have been brought in as a consultant to determine whether flood-proofing of the building is economically justified. The alternatives are as follows:
Option A. Do nothing. Damage in a moderate flood is $10,000 and in a severe flood, $25,000;
Option B. Install the stormwater pump at a cost of $15,000 to withstand moderate flooding without damage and to withstand severe flooding with $10,000 damages;
Option C. Install the stormwater pump and upgrade the sewage system at a cost of $30,000 to withstand a severe flood without damage;
Based on the above information, solve problem 1.
1.In any year, the chance of no flooding is 0.22 and the chance of moderate flooding is 0.44.
What is the expected cost of option B?

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