Categories: Uncategorized

a state highway department is planning the construction of a 50 mile four lane tol 415638

A state highway department is planning the construction of a 50 mile, four lane toll road. It estimates that the construction cost (t=0) will be $200,000,000 and annual maintenance costs will be $1,000,000 per year forever. In addition, every 10 years in perpetuity, a major resurfacing will have to be carried out at a cost of $10,000,000. It is estimated that $6,000,000 cars and $600,000 trucks will use the road each year, and it is decided that the toll charged to a truck will be four times that of a car. Interest rate is 7%. Determine what the toll should be for each car and truck to cover all expenses over an infinite planning period. Note: The toll does not vary year to year. The answers are Tollcar = $1.87 Tolltruck = $7.48. I keep getting numbers that are too high using capitalized cost formulas I have found. I am looking for an explanation/workout of this problem.

Don't use plagiarized sources. Get Your Custom Essay on
a state highway department is planning the construction of a 50 mile four lane tol 415638
For $10/Page 0nly
Order Essay
admin

Recent Posts

Economic Debate #3- Progressive Income Tax – The Homework Helper

Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…

2 years ago

MKT 6120 – Marketing Management – Davis Learning Engagement #7

TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…

3 years ago

jvjvjhvjhvhjvj

Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…

3 years ago

Students are supposed to select a technological organization of their choice.

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…

3 years ago

Increases the risk of wildfires

you need to post your 2-page information flier to share with your Final Project Group.…

3 years ago

Statistics for Technology management

discussion: Discuss the methods used at your company to measure and ensure quality products and…

3 years ago