Determining the salvage value in year

Assignment Help Business Economics

Reference no: EM131807009

A proposed tunnel has a first cost of $800M, annual O&M costs of $14M, a salvage value in year 100 of $225M, repaving every 10 years at $45M, and repainting lines and mending railings every 5 years $1.2M (note that this cost is included in the repaving cost for the years where repaving is done). Find the EAC (i = 5%) for a 100-year horizon.

Reference no: EM131807009

Questions Cloud

Determine the variances for each line of the profit : Determine the variances for each line of the profit and loss statement, both in dollar terms and in percentage terms

Proposed steel bridge has a life : A proposed steel bridge has a life of 50 years. The initial cost is $350,000, and the annual maintenance cost is $12,000.

What details of the fable support the abstract concept : On the right side, make notes on the key word(s) that can answer the following question: What details of the fable support the abstract concept of the moral?

The selling price of the deluxe bags increased : If the selling price of the deluxe bags increased by $0.30 (to $3.20), would the optimal mix change? What would the total profit?

Determining the salvage value in year : A proposed tunnel has a first cost of $800M, annual O&M costs of $14M, a salvage value in year 100 of $225M

Inferring casuality from the study : Museum Visit A random sample of 100 visitors (out of a total of 10,000 visitors) was obtained from museum records using systematic sampling.

What overall net income would be produced : What overall net income would be produced if the admission rate of the capitated group were reduced from the commercial level by 10 percent

What is the eaw of offer : The $1M is generous enough that there is no Mercedes in year 30. If i = 8%, what is the EAW of this offer?

What is the eac for the tunnel : With proper maintenance ($20M per year), the tunnel will last forever. If i = 5%, what is the EAC for the tunnel?

User Account

All Pages