Neco 2020 Geography Question 42

A region is exposed to two environmental hazards. Floods occur with an annual probability of \(0.12\) and cause an average monetary loss of \(\text{₦}150\) million per event. Droughts occur with an annual probability of \(0.08\) and cause an average loss of \(\text{₦}200\) million per event. Two mitigation projects are proposed:\nProject A reduces flood damage by \(40\%\) at a cost of \(\text{₦}30\) million.\nProject B reduces drought damage by \(30\%\) at a cost of \(\text{₦}25\) million.\nDetermine which single project yields the greater reduction in expected annual loss after accounting for its implementation cost, and state the net expected annual loss after the chosen project is implemented.