How much toll should be charged for each crossing

Assignment Help Business Economics

Reference no: EM131810182

A new toll bridge is to be constructed over the Green River at a cost of $120M. The bridge requires maintenance costing $4000 annually over its 50-year life. Every 10 years, the bridge will require repainting at a cost of $1M. The value to motorists using this bridge is estimated to be $1.60 per trip. If the interest rate is 10% and 25,000 vehicles per day travel over the bridge, how much toll should be charged for each crossing? Rounding that toll up to the nearest nickel, what is the consumers' surplus?

Reference no: EM131810182

Questions Cloud

Subsidizing first costs for alternative energy usage : A state program is subsidizing first costs for alternative energy usage. Carla and Charlie are the owners of a small architectural and engineering firm

What is the chance that you come out ahead : In roulette, the "house special" is a bet on the five pockets 0, 00, 1, 2 and 3. There are 5 chances in 38 to win, and the bet pays 6 to 1.

Role in changing depreciation methods and stakeholders : ACC701 - analyse how they apply to the given situation. Specific research supporting recommendations need to be provided and

Journalize the transactions in denvers general journal : Purchased computer equipment at a cost of $9,000, signing a six-month, 6% note payable for that amount.

How much toll should be charged for each crossing : If the interest rate is 10% and 25,000 vehicles per day travel over the bridge, how much toll should be charged for each crossing?

What is the chance of overloading the elevator : A new elevator in a large hotel is designed to carry about 30 people, with a total weight of up to 5000 ibs. More than 5000ibs. Overloads the elevator.

Calculate a benefit-cost ratio : The interest rate is 5%, and the horizon is 50 years. Calculate a benefit/cost ratio for your recommended alternative.

Discuss how do accounting software applications aid : How do accounting software applications aid in protecting customer information

Find the probability that the profit will be more : Suppose you have $100,000 to invest in stocks. If you invest $1000 in any particular stock your profit will be $200, $100, $0 or -$100 (a loss).

User Account

All Pages