The initial cost of constructing a permanent dam (i.e., a dam that is expected to last forever) is $500 million. The annual net benefits will depend on the amount of rainfall: $20 million in a "dry" year, $25 million in a "wet" year, and $50 million in a "flood" year.Meteorological records indicate that over the last 100 years there have been 85 "dry" years, 10 "wet" years, and 5 "flood" years.Assume the annual benefits, measured in real dollars, begin to accrue at the end of the first year.Using the meteorological records as a basis for prediction, what are the net benefits of the dam if the real discount rate is 5 percent? [4 marks]