An Engineer Is Considering the Size of a Reservoir for Flood

question 7

Essay

An engineer is considering the size of a reservoir for flood control in the northern part of Germany. The size of the reservoir is closely related to the annual rainfall. In addition, there will be reparation costs from damages when the amount of rainfall exceeds the design capacity. If such damage occurs, it is estimated that the annual reparation cost will be 2.3% of the capital investment. The probabilities of specific amounts of rainfall per year and the estimated investment costs of the reservoir are given below. Using an interest rate of 8% per year and a study period of 11 years, determine the appropriate investment on the basis of AW. $$\begin{array} { | l | l | l | } \hline \text { Annual } \\\text { Rainfall, M}^{2}& \begin{array} { l } \text { Probability of } \\\text { Greater } \\\text { Rainfall }\end{array} & \begin{array} { l } \text { Estimated } \\\text { Capital } \\\text { Cnvestment, } \$\end{array} \\\hline 110 & 0.6 & 2,500,000 \\\hline 120 & 0.2 & 2,550,000 \\\hline 130 & 0.1 & 2,600,000 \\\hline 140 & 0.055 & 2,650,000 \\\hline 150 & 0.045 & 2,700,000 \\\hline\end{array}$$

Understand the concept of power dynamics in organizational and social contexts.

Identify the factors contributing to job satisfaction and employee motivation.

Recognize the impact of leadership styles on organizational behavior and employee performance.

Comprehend the principles of equity theory and its application in the workplace.

---

Definitions:

Ledger

A book or other collection of financial accounts where all transactions are summarized and recorded.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time, offering a snapshot of its financial condition.

Post-Closing Trial Balance

A listing of all company account balances after closing entries are made, ensuring the ledger is balanced before starting a new accounting period.

Balance Sheet Account Balances

The values at a specific point in time for assets, liabilities, and equity accounts as represented in a company's balance sheet.