Foundation redesign. In Example. the engineer learns that it is virtually certain that gravel lenses will be encountered when driving piles at the building site. This will double the cost of pile foundations to $500.000.
Rework Example under this assumption.
Note that if the spread footings need to be replaced with piles, the replacement cost will increase by 5250.000.
(a) Draw the complete decision tree.
(b) Determine the optimal strategy and cost.
(c) Calculate the EMVI and the benefit-cost ratio for the experiment.
(d) Calculate the EMVPI.