Vehicle crossing charge to deliver zero profit solution

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Reference no: EM132073106

A civil engineering bridge project is planned with a budget of £150m. The sponsors for the bridge have estimated that the annual maintenance for the bridge will be £1m and that 3m vehicles will cross the bridge each year. Assuming that the bridge has a life 50 years and that the charge for all vehicle types crossing the bridge is the same, what is the vehicle crossing charge to deliver a zero profit solution? Assume a discount rate 7%.

Reference no: EM132073106

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