The Way-Too-High Construction Company is building an apartment complex in the arid southwest on the top...

Transcribed Image Text:

The Way-Too-High Construction Company is building an apartment complex in the arid southwest on the top of a partially leveled hill. The road that winds around the hill to the apartment complex entrance needs retaining walls for support above and below the road surface. The probability of a rain shower greater than a given amount and the associated damage and retaining wall construction costs are shown below. Rainfall (in) 1.0 2.0 2.5 3.0 3.5 4.0 Probability of greater rainfall occurring 0.6 0.3 0.1 0.02 0.005 0.001 Retaining wall cost to carry rainfall $15,000 $16,000 $18,000 $21,000 $28,000 $35,000 Annual damage for greater rainfall $1,000 $1,500 $2,000 $5,000 $9,000 $14,000 Determine which plan will result in the lowest annual cost over a 25-year period at an interest rate of 10%. The Way-Too-High Construction Company is building an apartment complex in the arid southwest on the top of a partially leveled hill. The road that winds around the hill to the apartment complex entrance needs retaining walls for support above and below the road surface. The probability of a rain shower greater than a given amount and the associated damage and retaining wall construction costs are shown below. Rainfall (in) 1.0 2.0 2.5 3.0 3.5 4.0 Probability of greater rainfall occurring 0.6 0.3 0.1 0.02 0.005 0.001 Retaining wall cost to carry rainfall $15,000 $16,000 $18,000 $21,000 $28,000 $35,000 Annual damage for greater rainfall $1,000 $1,500 $2,000 $5,000 $9,000 $14,000 Determine which plan will result in the lowest annual cost over a 25-year period at an interest rate of 10%.

Answer rating: 100% (QA)

To determine which plan will result in the lowest annual cost over a 25year period at an interest ra... View the full answer