Find the mean value of the expansions

Reference no: EM13269816

A new 2-lane STREET is needed in a part of town that is growing. At some point the road will need 4 lanes to handle anticipated traffic. If the citys optimistic estimate of growth is used, the expansion will be needed in 4 years. For the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years, respectively. The expansion will cost $4.2 million. Use interest rate of 8%.

a. What is the PW for each scenario, and what is the range of values?

b. Find the mean value of the expansions.

Reference no: EM13269816

Questions Cloud

Explain the expected freezing point of a solution : What would be the expected freezing point of a solution made up of 0.4237g of solute dissolved in 27.3g cyclohexane? The solute has a MW of 173.5 g/mol.

Determine the price of implementing a straddle position : Assuming the strike price is $30, stock price is $30, the risk free rate is 2%, and it is a 6 month option, the call premium is $3.59, determine the price of implementing a straddle position and explain when the option position will make money and..

What would be the new price of the bond : Compute the price of the bond (100=par) as of July 1, 2014 if the market requires a yield to maturity of 3.10%. If the market were to suddenly require the yield to rise to 3.50%, what would be the new price of the bond?

Explain the average atomic weight of the uranium atoms : A certain enriched sample of uranium contains 92.000% U-238 and 8.000% U-235. What is the average atomic weight of the uranium atoms in this sample? The isotopic masses of U-235 and U-238 are 235.0439 amu and 238.0508 amu, respectively.

Find the mean value of the expansions : For the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years, respectively. The expansion will cost $4.2 million. Use interest rate of 8%.

What is the value of nico stock : If the firm's average cost of capital is 15 percent, the market value of the firm's debt is $500,000, and Nico has a half million shares of stock outstanding, what is the value of Nico's stock?

Difference in solution'' freezing point from the pure solvent : If a 0.568m soloution had a 3.75 C difference in its freezing point from the pure solvent, what is the freezing point depression constant Kfp for the solvent

Calculate antenna radiation resistance and ohmic resistance : Assume a Hertzian dipole antenna model. (a) Calculate the antenna radiation resistance and Ohmic resistance, (b) Calculate the radiation efficiency of this antenna, (c) Calculate the input impedance, (d) calculate the antenna gain

Estimate firm a cost of equity for the new business : If the riskless rate is 3% and the market return is 8%, estimate Firm A's cost of equity for the new business using the CAPM.

User Account

All Pages