What is the expansion eac

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Reference no: EM131807002

A new airport expansion will cost $850 million. Of the total, $550 million is for land acquisition and major earthworks, which will last as long as the airport is used, and $200 million is for terminal buildings, which will last 50 years. These buildings will cost $25 million per year in O&M. The last $100 million will be spent on runways. These will also last forever, with a major repaving every 20 years at a cost of $40 million. What is the expansion's EAC at i = .08 over a perpetual life?

Reference no: EM131807002

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