Adding new buses for its current mass-transit system

Assignment Help Business Economics

Reference no: EM131167022

The City of Washington is considering adding new buses for its current mass-transit system that links from the Tacoma International Airport to the clustering city destinations on non-stop basis. The total investment package is worth $10 million and expected to last 10 years with a salvage value of $850,000. The annual operating and maintenance cost for buses would be $5 million during the first year and will grow by 5% each year over the previous years O&M costs thereafter. If the system is used for 800,000 trips per year, what would be the fair price to charge per trip? Assume that the City of Washington uses 5% interest rate for any city-sponsored project. Assume the fare will be the same for all destinations.

Reference no: EM131167022

Questions Cloud

Compare results obtained using the two different approaches : find that probability that 10 or more of the 30 individuals entering the store in a given hour will decide to make a purchase.

Draw the game tree for the game of tic-tac-toe for the level : Assign the value of the evaluation function mentioned in the text that assigns to a position the number of files containing no Os minus the number of files containing no Xs as the value of each vertex at this level and compute the value of the tre..

What do you need to do in order to meet those requirements : Locate your state licensing board within the National Board for Certified Counselors and research what credentials are required for you to become licensed in that particular state. What specific requirements are necessary in your state to become l..

Define bond length and bond energy : Define bond length and bond energy. Use the bond energies to calculate the enthalpy change in the formation of ammonia gas from nitrogen and hydrogen gas?

Adding new buses for its current mass-transit system : The City of Washington is considering adding new buses for its current mass-transit system that links from the Tacoma International Airport to the clustering city destinations on non-stop basis. The total investment package is worth $10 million and e..

Isomerism in alkanes and alkenes : a) Discuss isomerism in alkanes and alkenes b) What happens when the following is carried out (give reactions) I. Acetic acid is reacted with sodium carbonate. The sodium salt of carboxylic acid is then heated with solid sodium hydroxide

Discuss how the visual system resolves ambiguities : Discuss how the visual system resolves ambiguities by maing different types of assumptions. (This is a Visual Ambiguity Presentation for Cognitive Psychology.) I need 2 power point slides with speaker notes. I need it turnitin plagiarism checke..

Grievance handling procedure : Why is it important to have a grievance handling procedure?

What fraction of cans will contain given ounces of soda : What fraction of cans will contain less than 11.9 ounces of soda? - What fraction of cans will contain between 12 and 12.08 ounces of soda?

User Account

All Pages