Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company construction cost of the bypass is 1.7 B dollars and 33 million dollars would be required each year for annual maintenance. The annual


A company construction cost of the bypass is 1.7 B dollars and 33 million dollars would be required each year for annual maintenance. The annual benefits to the public have been estimated to be 250 million dollars. What will be the ratio of this project at a 7.5 % interest rate? How about if the interest rate is at 3/4%? Indicate which interest rate will be the bypass is economically acceptable

Step by Step Solution

3.35 Rating (164 Votes )

There are 3 Steps involved in it

Step: 1

Ans Given Cost of the bypasa 17 B Dollars required each year for annual maint... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Engineering Economy

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

16th edition

133439275, 133439274, 9780133819014 , 978-0133439274

More Books

Students also viewed these Economics questions