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Please show steps. Thank you in advance. 6. The state of California is considering a Bullet Train (high speed rail) between LA and San Francisco.
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6. The state of California is considering a Bullet Train (high speed rail) between LA and San Francisco. The initial cost of the train will be $80 billion with ongoing maintenance of $1 billion per year. In addition, there will be a $20 billion overhaul that will occur every 10 years. The ongoing benefits from paid ridership and increased economic activity will be $9 billion annually. Assume the life of the project is forever infinite), and the required return is 6%. Is this project justified using Benefit Cost ratio B/C)
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