please answer questions #8-11
Financing Infrastructure 8. Watch the Part 2 screencast on public private partnerships. What are the typical reasons why a municipality or public utility might sign a contract to lease the operations, maintenance and management of infrastructure such as water supply, toll roads, parking, etc.? (3 points) 9. Do you think public-private partnerships (PPPs) are a good idea? Give three benefits and three drawbacks to the private acquisition of a project such as the Indiana Tollway. (3 points) 10. Determine the lowest life cycle cost of the following alternatives for a new infrastructure project: (3 points) a. Alternative #1 has a design life of 20 years, capital cost of $2.5 million, equivalent annual O&M of $25,000. b. Alternative #2 has a design life of 20 years, capital cost of $2.8 million, equivalent annual O&M of $5,000. (Ignore present value inflation/investment potential) calculations) 11. Determine the lowest life cycle cost of the following alternatives for a new infrastructure project: (3 points) a. Alternative #1 has a design life of 20 years, capital cost of $2.6 million, equivalent annual O&M of $25,000. b. Alternative #2 has a design life of 40 years, capital cost of $6.1 million, equivalent annual O&M of $5,000. (Hint: Convert Alternative #1 into an equivalent design life of 40 years, i.e. include a total replacement at end of original design life (20 years), (Ignore present value inflation/investment potential) calculations) Financing Infrastructure 8. Watch the Part 2 screencast on public private partnerships. What are the typical reasons why a municipality or public utility might sign a contract to lease the operations, maintenance and management of infrastructure such as water supply, toll roads, parking, etc.? (3 points) 9. Do you think public-private partnerships (PPPs) are a good idea? Give three benefits and three drawbacks to the private acquisition of a project such as the Indiana Tollway. (3 points) 10. Determine the lowest life cycle cost of the following alternatives for a new infrastructure project: (3 points) a. Alternative #1 has a design life of 20 years, capital cost of $2.5 million, equivalent annual O&M of $25,000. b. Alternative #2 has a design life of 20 years, capital cost of $2.8 million, equivalent annual O&M of $5,000. (Ignore present value inflation/investment potential) calculations) 11. Determine the lowest life cycle cost of the following alternatives for a new infrastructure project: (3 points) a. Alternative #1 has a design life of 20 years, capital cost of $2.6 million, equivalent annual O&M of $25,000. b. Alternative #2 has a design life of 40 years, capital cost of $6.1 million, equivalent annual O&M of $5,000. (Hint: Convert Alternative #1 into an equivalent design life of 40 years, i.e. include a total replacement at end of original design life (20 years), (Ignore present value inflation/investment potential) calculations)
