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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

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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 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; ased on the above information, solve the problem 1 and 2. In any year, the chance of no flooding is 0.29 and the chance of moderate flooding is 0.43. What is the expected cost of option B

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