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