How much per vehicle should the toll be to cover

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A city engineer knows that she will need $125 million in 4 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 5 million vehicles per year. How much per vehicle should the toll be to cover the cost of the tollbooth replacement project? Interest is 5%. Simplify your analysis by assuming that the toll receipts are all received at the end of each year in a lump sum.

Reference no: EM13214358

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