#Sales Offer!| Get upto 25% Off:

A.A road construction project is estimated to have the following expenses:

 

Initial engineering, right of way acquisition, and construction:              $50,000,000

Major rehabilitation at end of years 15 and 30:                                      $18,000,000 ea.

Annual maintenance and operations:                                                    $ 6,000,000/yr

Lost annual income due to removal of property from tax base:             $ 3,000,000/yr

What is present worth of total costs, given a 45-year analysis period and interest of 3%?

B. A sinking fund for a bridge replacement is established. The cost is estimated at

$20 Million, and the present bridge has a thirty year expected life.

a. What is the annual payment to the sinking fund? Assume interest = 8%.

b. At the end of year 13, what is the balance in the sinking fund?

c. If after year 13, interest changes to 7% for the remaining 17 years, how much must your annual payments be in order to still have $20 million at the end of thirty years?

 

Q13A.:A fare collection system has the following annual budget:

Labor – One position (24 hrs/ day): 5 people @ $35,000/yr (including benefits)

Maintenance and Operations: $15,000/ yr

Assume there is an automated system which will require:

Initial capital investment with 20-year service life:                $X

Labor:                                                                         $35,000/yr

M&O:                                                                         $20,000/yr

At 4% interest, what value of “X” will make the systems equal in annual cost?

B. How much can a toll bridge authority afford to spend to replace a manned toll booth with an automated device? It costs $40,000 per year to man the toll booth, interest is 7%, and the service life of an automated device is expected to be 15 years.

 

Found something interesting ?

• On-time delivery guarantee
• PhD-level professional writers
• Free Plagiarism Report

• 100% money-back guarantee
• Absolute Privacy & Confidentiality
• High Quality custom-written papers

Related Model Questions

Feel free to peruse our college and university model questions. If any our our assignment tasks interests you, click to place your order. Every paper is written by our professional essay writers from scratch to avoid plagiarism. We guarantee highest quality of work besides delivering your paper on time.

Grab your Discount!

25% Coupon Code: SAVE25
get 25% !!