Question
The Government of Fiji is planning to build a bridge from Viti Levu to Vanua Levu which will cost $70million. A round trip toll of
The Government of Fiji is planning to build a bridge from Viti Levu to Vanua Levu which will cost $70million. A round trip toll of $12 will be charged to all vehicles to generate income from the bridge. Traffic projection is estimated to be 6000 per day. The operating and maintenance costs will be 24% of all toll revenue. Fiji, being a developing country, has received financing for the project by means of a Loan from the Asian Development Bank at a very generous fixed interest rate of 2% per annum. Find the payback period (in years) for this project if this was to be fully self-funded.
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