Question
Stillwater has initiated discussions on attracting rail service. A depot would need to be constructed, which would require $500,000 in land and $5.2 million in
Stillwater has initiated discussions on attracting rail service. A depot would need to be constructed, which would require $500,000 in land and $5.2 million in construction costs. Annual operating and maintenance costs for the facility would be $150,000, and personnel costs would be an additional $120,000. Other assorted costs would be born by the railroad and federal authorities. Annual benefits of the rail service are estimated as listed below. $1,300,000 Railroad annual payments $200,000 Rail tax charged to passengers $180,000 Convenience benefits to local residents $120,000 Additional tourism dollars for Stillwater Apply the B-C ratio method, with a MARR of 8% per year and 20 year study period, to determine if the rail service should be established.
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