A city council has estimated that it has a surplus of $100 Million (M). The council...
A city council has estimated that it has a surplus of $100 Million (M). The council is exploring the following three projects, each of which costs $100 M.
A bridge which takes five years to build, then yields $50M benefit per year for the next 10 years. The benefits are received at the end of each year. Assume that the costs are spread out evenly over the five years (i.e. year 1 to year 5) and are paid at the end of each year.
Assuming the discount rate of 5 percent, calculate the following?
Discounted Benefit?
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A city council has estimated that it has a surplus of $100
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the benefits are also per year The city of Ottawa is considering to build a new...
the
benefits are also per year
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Question 2 (30%) The city of Ottawa is considering to build a new toll highway that spans from Orleans to Kanata, the p...
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the
benefits are also per year
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