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A decision has been made to perform certain repairs on the outlet works of a small dam. For a particular 36-inch gate valve, there are three available alternatives:
A. Leave the valve as it is.
B. Repair the valve.
C. Replace the valve
If the vave is left as it is, the probability of a failure of the valve seats, over the life of the project, is 60%; the probabiity of failure of the valve stem is 50%; a,d of failure of the valve body is 40%. If the valve is repaired, the probability of a failure of the seats, over the life of the project, is 40%; of failure of the steam is 30%; and of failure of the body is 20%. If the valve is replaced, the probability of a failure of the seats, over the life of the project, is 30%; of failure of the steam is 20%; and of failure of the body is 10%. The present worth of cost of future repairs and service disruption of a failure of the seats is $10,000; the present worth of cost of a failure of the steam is $20,000; the present worth of a failure of the body is $30,000. The cost of repairing the valve now is $10,000; and of replacing it is $20,000. If the criterion is to minimize expected costs, which alternative is best?
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