Problem 2. Financial Benefit-Cost Analysis Year Initial Costs (k) (l) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 70,000,000 70,000,000 70,000,000 70,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Annual Fixed Annual Oper. Costs Costs (m) (n) X10*1,000,000 (j)*(X2+X4+X6)* X8/100 0 0 0 0 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 43,000,000 0 0 0 0 434,395,223 439,825,164 445,322,978 450,889,515 456,525,634 462,232,205 468,010,107 473,860,234 479,783,487 485,780,780 491,853,040 498,001,203 504,226,218 510,529,046 516,910,659 523,372,042 529,914,192 536,538,120 543,244,846 550,035,407 556,910,850 563,872,235 570,920,638 578,057,146 585,282,860 592,598,896 600,006,382 Prop. CompenTotal Train Fare sation Costs ($/PT) (o) (p) (q) 10*X5*1000000* (l)+(m)+(n)+(o) 1.5+500*3000* X10*1.5 201,750,000 271,750,000 0 70,000,000 0 70,000,000 0 70,000,000 0 477,395,223 0 482,825,164 0 488,322,978 0 493,889,515 0 499,525,634 0 505,232,205 0 511,010,107 0 516,860,234 0 522,783,487 0 528,780,780 0 534,853,040 0 541,001,203 0 547,226,218 0 553,529,046 0 559,910,659 0 566,372,042 0 572,914,192 0 579,538,120 0 586,244,846 0 593,035,407 0 599,910,850 0 606,872,235 0 613,920,638 0 621,057,146 0 628,282,860 0 635,598,896 0 643,006,382 Total Train Fare Benefits (r) (j)*(q) 0 0 0 0 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.60 0 0 0 0 501,225,258 507,490,573 513,834,206 520,257,133 526,760,347 533,344,852 540,011,662 637,888,776 645,862,386 653,935,666 662,109,861 670,386,235 678,766,063 687,250,638 695,841,271 704,539,287 713,346,028 825,443,261 835,761,302 846,208,318 856,785,922 867,495,746 878,339,443 889,318,686 900,435,170 911,690,609 923,086,742 PV (total) NPV B-C Ratio Discounted Total Costs (s) PV of (p) Discounted Total Benefits (t) PV of (r) Final Results: Variables 271,750,000 67,961,165 65,981,714 64,059,916 424,159,473 416,489,227 408,962,806 401,577,372 394,330,148 387,218,415 380,239,511 373,390,830 366,669,819 360,073,981 353,600,868 347,248,086 341,013,287 334,894,176 328,888,502 322,994,061 317,208,698 311,530,297 305,956,789 300,486,147 295,116,386 289,845,559 284,671,763 279,593,130 274,607,833 269,714,079 264,910,116 0 0 0 0 445,332,150 437,765,827 430,328,058 423,016,659 415,829,482 408,764,418 401,819,392 460,824,424 452,994,883 445,298,368 437,732,619 430,295,414 422,984,570 415,797,939 408,733,411 401,788,911 394,962,400 443,716,427 436,177,556 428,766,772 421,481,900 414,320,800 407,281,369 400,361,540 393,559,280 386,872,594 380,299,516 9,605,144,155 11,347,106,676 1,741,962,521 1.18 IRR Financial: PV Benefits PV Costs NPV B-C Ratio Financial B-C Analysis 11347106676 9605144155 1741962521 1.181357249 Economic B-C Analysis 21381614082 13395174358 7986439724 1.596217676