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Construction at the local airport

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Runway construction at the local airport is expected to cost $35M. The runway will require maintenance costing $200K per year. At the end of each 6-year period, the runway will require resurfacing at a cost of $1750K. Assume an interest rate of 6% and a life of 30 years. How many landings and takeoffs per day are needed to justify the runway if each landing or take-off is worth $85 to the airport authority? (Answer: 96)

Reference no: EM131810191

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