A new 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 traf?c. 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 20%. 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 40%. The expansion will cost $ 4.2 million and the interest rate is 8%. What is the expected PW the expansion will cost? Q) a. $ 2.05 million 0 b.$ 2.5 million O c. $1.5 million O d.$ 3.05 million

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