Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A road between Yellowknife, NWT and Uranium City, Saskatchewan will have a most likely construction cost of $7 million per mile. Doubling this cost is

A road between Yellowknife, NWT and Uranium City, Saskatchewan will have a most likely construction cost of $7 million per mile. Doubling this cost is considered to have a probability of 15%, and cutting it by 25% to have a probability of 30%. The government uses an interest rate of 8% for these types of projects, and the road should last 40 years. Calculate the expected value of the equivalent annual construction cost per mile

Please answer in millions $$ per mile with 3 decimal places and without dollar sign

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Legal Fundamentals for Canadian Business

Authors: Richard A. Yates

4th edition

133370283, 978-0133370287

More Books

Students also viewed these Economics questions

Question

2. The purpose of the acquisition of the information.

Answered: 1 week ago

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago

Question

3. How much information do we need to collect?

Answered: 1 week ago