For three storms
Cost = $80,000 + $80,000 (SPPW i=0.06, n=13) + $80,000 (SPPW i=0.06, n=25) + $80,000
(SPPW i=0.06, n=37) +
$4000(USPW i=0.06, n=50)
= $80,000 + $80,000(0.4688) + $80,000(0.233) +
$80,000(0.1158)+
$4000(15.762)
=
$80,000 + $37,504 + $18,640 +
$9,264 + $63,048
=
$208,488
negative effects = $90,000(SPPW i=0.06, n=13) + $90,000(SPPW i=0.06, n=25)
+ $90,000(SPPW i=0.06, n=37)
= $90,000(0.4688) + $90,000(0.233) + $90,000(0.1158)
= $42,192 + $20,970 +$10,422
= $73,584
= $208,488 + $73,584
Ptb3storm = $282,072