A Power Station Is on One Side of a River

question 106

Multiple Choice

A power station is on one side of a river that is 0.5 mile wide,and a factory is 6 miles downstream on the other side of the river.It costs $14 per foot to run overland power lines and $20 per foot to run underwater power lines.Estimate the value of x that minimizes the cost.The value of is the length of the overland piece of power line. ​

• A) 2.56
• B) 5.51
• C) 3
• D) 5.49
• E) 0.87

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Definitions:

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows associated with an investment, minus the initial investment cost.

Risk

Exposure to the chance of loss or damage, often evaluated in financial terms for its potential impact on investment returns.

Sensitivity Analysis

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Capital Budgeting

The process a business undergoes to evaluate potential major projects or investments.