What is the constant-break-even toll

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A bridge has the following costs: t=0: $10million; t=1 through 20: $1m The expected traffic across the bridge is 100,000 cars in t=1, growing at 8% each year. What is the constant, break-even toll (price to cross the bridge which makes profits = 0)?

How would I approach this problem given that the rate is 8%?

Reference no: EM131426963

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