Question
The freeway authority is considering the option of building flyover in a busy road to solve the traffic problem. The cost of construction is expected
The freeway authority is considering the option of building flyover in a busy road to solve the traffic problem. The cost of construction is expected to be 24517k dollars, annual operation and maintenance cost 23k dollars which is expected to increase by 0.89k from the 10th year onward and zero salvage value. The flyover is having a life of 25 years. Easing of traffic is expected to contribute 1000k per annum to the local economy which is expected to increase at a rate of 12% from the 5th year onward. What is the present worth of the alternative?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started