Question
A rail road branch line to a landfill site is to be constructed. It is expected the landfill will be used for 8 years, after
A rail road branch line to a landfill site is to be constructed. It is expected the landfill will be used for 8 years, after which the landfill site will be closed and the land turn back to agricultural use. Building the landfill site cost $150,000 and in the end of the 8th year it will be sold for $70,000. The landfill site will yield $30,000 in revenue annually for 8 years while an O&M expense of $5,000 is required from Year 1. Draw the cash flow diagram. Assume the end-of-period discrete cash flows. please explain each step in detail and the cash flow diagram.
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