How much per vehicle should the toll be to cover the cost

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A city engineer knows that she will need $25 million in 3 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 20 million vehicles per year. How much per vehicle should the toll be to cover the cost of the toll booth replacement project? Interest is 10%. (Simplify your analysis by assuming that the toll receipts are recived at the end of each year in a lump sum.)

Reference no: EM13612078

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