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|3.b) A newly opened toll bridge has a life expectancy of 25 years. The bridge is expected to have an average of 300,000 vehicles paying

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|3.b) A newly opened toll bridge has a life expectancy of 25 years. The bridge is expected to have an average of 300,000 vehicles paying toll per month for the full 25 years. At the end of every month the tolls will be deposited into an account bearing annual interest at 7.5% compounded monthly. The operating and maintenance expenses for the toll bridge are estimated at 2.0 EGP per vehicle. 1. Draw cash flow diagram. 2. How much toll must be collected per vehicle to accumulate 50,000,000 EGP by the end of 25 years? 3. What should be the total toll per vehicle to include both overhead and maintenance costs as well as replacement cost? 4. What annual effective interest rate is being earned

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