[Questier A road between Castle Rock (Westerlands) and King's Landing (Stormlands), will have a most likely construction cost of $10 million per mile. Doubling this cost is considered to have a...

Extracted text: [Questier A road between Castle Rock (Westerlands) and King's Landing (Stormlands), will have a most likely construction cost of $10 million per mile. Doubling this cost is considered to have a probability of 5% and cutting it by 30% is considered to have a probability of 19%. Westerlands and Stormlands are located in Westeros, where the interest rate to assess this type of projects is 4%, and the road should last 25 years before major reconstruction. Question. What are the expected value and standard deviation of the equivalent annual construction cost per mile, i.e., E[EUAC] and SD(EUAC)? Hint: [A/P,4%,25] = 0.064. O E[EUAC] = $635520 and SD(EUAC) = $913912 O E[EUAC] = $759803 and SD(EUAC) = $276711 O E[EUAC] = $759803 and SD(EUAC) = $1109581 O E[EUAC] = $635520 and SD(EUAC) = $165723