Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

The Sherman Act guaranteed the right of workers to organize unions

Answered: 1 week ago