Problem6: A small dam is being slansd for a niver tributary that is subject to frequent flooding From past esperiencs, the probabilities that water flow will exceed the design capacity of the dam during a us relevant cost information, are as follows Estimated Annual Probability of Greater Flow During a Year Independent for different years) 0.35 0045 0.040 0.030 0010 Dam Design Capital Investment (Damages it Water Flows ) Exceed Design Capacity 150,000 175,000 200,000 225,000 230000 170,000 155,000 165,000 190,000 225.000 The life of the dam is expested to be 40 years, with negligible salvage value The capital costs are to be paid off in equal annual installments over the 10 year life, starting at the end of the first year, assuming an interest rate of 10% per year compounded annually Determine which design should be implemented (Hint Get your answer by calciulating the total aninual costs and expected average annual costs of flooding throughout the 40-year period)