Assume that a Japanese car manufacturer exports cars to U. S. dealerships, which are priced in yen. The demand for those cars declines when the yen is strong. The manufacturer also produces some cars in the U. S. with U. S. materials and those cars are priced in dollars. The manufacturer could reduce its economic exposure by: a. pricing its exports in dollars. b. closing down most of its plants in the U. S. c. relying completely on Japanese suppliers for its parts. d. producing more automobiles in the U. S.

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?