C-spec, inc., is attempting to determine whether an existing machine is capable of milling an engine part that has a key specification of 4 ± .003 inches. after a trial run on this machine, c-spec has determined that the machine has a sample mean of 4.001 inches with a standard deviation of .002 inch.

Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?