What is probability distribution of equivalent construction

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Reference no: EM13228199

a road between fairbanks and nome, alaska, will have a most likely construction cost of $4 million per mile. doubling this cost is considered to have a probability of 30%, and cutting it by 25% is considered to have a probability of 10%. The state's interest rate is 5%, and the road should last 30 years before major construction. What is the probability distribution of the equivalent annual construction cost per mile?

Reference no: EM13228199

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