Chapter 3 Review Problems Time Value of Money - Compounding and Discounting Individual Cash Flows The cost of rebuilding the Main Street Bridge in 2018 is $2,300,000.00. Engineers estimate the cost will rise by 8% if the project is delayed one year until 2019. If the risk free rate is 4%, what is the cost of delaying the project in terms of 2018 dollars? a. $ 276,000.00 b. $ 184,000.00 c. $ 92,000.00 d. $ 88,461.54 e. $ 0.00 f. None of the above answers is within $5,000 of the actual cost of delaying the project one year. O 17:52 52 1383/396 O #