Question: 111 ROFITS A construction company has been offered a contract for $7.8 million to Construct and operate a trucking route for five years transport

111 ROFITS A construction company has been offered a contract for $7.8

111 ROFITS A construction company has been offered a contract for $7.8 million to Construct and operate a trucking route for five years transport ore from a mine site to a smelter. Thesmelteris located on arnajor highway. mine is 3 km into a heavily forested area, off !he' roed. @smelter highway mine Construction (Capital) Costs re estirnated asi611QWs'i Repgvirig Coit' $200 A new gravel Foad from the mine fto,the onighway will:icost $500 000/km. Operating* Conaiflon < as f61ioWs':$V Therewillbe%l ObjoundfripS1each day; each five years .the mine' will; be opeo. A" Operating.costs on the gravel the speed limit be 40. km/hz Operatihdcosts orihe:highwywil! b 70 krn/h,: Use Calulusto determinefthe company

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