Neco Model Questions Vol1 2018 Geography Question 28

A community faces an annual flood risk. The probability of a flood in any year is \(0.12\) and the expected damage cost if a flood occurs is \(\₦8,000,000\). Two mitigation options are available:\n\n*Option A*: Build a levee that reduces the flood probability to \(0.04\). The levee costs \(\₦1,200,000\) per year to maintain.\n\n*Option B*: Install an early‑warning system that reduces the damage cost by \(40\%\) (i.e., damage becomes \(60\%\) of the original) while the flood probability remains unchanged. The system costs \(\₦800,000\) per year.\n\nAssuming only one option can be adopted, which option gives the lower expected annual loss (including the annual cost of the option)? State the answer as "Option A", "Option B", or "None".