On a smaller scale, consider a storm that causes a dam on a small lake to fail. The town is considering three alternatives to replace the dam. Each design has different costs, storage capacities, life, and estimated damages when floods exceed the storage capacities. Assume an interest rate of 6%. Alternative Cost Maximum Capacity Life (years) Flood Damage A $4.50M 1M acre-ft 40 $8M B $9.75M 1.5M acre-ft 50 $6M $20M 2.0M acre-ft 60 $3M Rainfall data and flood routing analysis show the probability associated with water flow into the lake, which can be used to identify annual flood damage costs. Flow (M acre ft) Annual Probability 0.0 to 0.5 62% 0.6 to 1.0 20% 1.1 to 1.5 11% 1.5 to 2.0 6% 2.1 or more 1% Identify the EUAC for each alternative and choose which alternative to build. Hint: the EUAC for Alternative A is $1.74M. On a smaller scale, consider a storm that causes a dam on a small lake to fail. The town is considering three alternatives to replace the dam. Each design has different costs, storage capacities, life, and estimated damages when floods exceed the storage capacities. Assume an interest rate of 6%. Alternative Cost Maximum Capacity Life (years) Flood Damage A $4.50M 1M acre-ft 40 $8M B $9.75M 1.5M acre-ft 50 $6M $20M 2.0M acre-ft 60 $3M Rainfall data and flood routing analysis show the probability associated with water flow into the lake, which can be used to identify annual flood damage costs. Flow (M acre ft) Annual Probability 0.0 to 0.5 62% 0.6 to 1.0 20% 1.1 to 1.5 11% 1.5 to 2.0 6% 2.1 or more 1% Identify the EUAC for each alternative and choose which alternative to build. Hint: the EUAC for Alternative A is $1.74M