What must the annual gradient be

Reference no: EM132168013

Question: Assume a study period of 100 years with $0 salvage values for Problem 14.9. If the initial annual benefit is $6 million, what must the annual gradient be for B/C ≥ 1?

Problem: A new airport expansion will cost $85 million. The largest amount, $55 million, is for land acquisition and major earthworks, which will last as long as the airport is used. The next $20 million is for terminal buildings, which will last 50 years; these buildings will cost $2.5 million per year in O&M. The last $10 million will be spent on runways. These will also last forever, with a major repaving every 20 years at a cost of $4 million. What annual benefit is required for B/C ≥ 1? Assume an interest rate of 8% and a perpetual life.

Reference no: EM132168013

Questions Cloud

Calculate the project benefit-cost ratio : A busy intersection in Metro Center needs renovation. Plans call for adding a turn lane, a new computer-controlled signal, and new sidewalks.

Human capital is important to overall economic health : Explain why you feel that Increases in Human Capital is important to the overall economic health of an urban area in Chicago?

What annual benefit is required : A new airport expansion will cost $85 million. The largest amount, $55 million, is for land acquisition and major earthworks.

Which of the five forces in porter five forces model : Which of the five forces in Porter’s five forces model do you anticipate will most strongly affect Andy’s potential business and why?

What must the annual gradient be : Assume a study period of 100 years with $0 salvage values for Problem 14.9. If the initial annual benefit is $6 million, what must the annual gradient be.

What is your understanding of the present value of money : What is your understanding of the present value of money? How about the future value of money?

Write a program to access image files : Write a C program to access image files. In particular, you are going to read three types of pgm image files - Write the data buffer to the file using a binary

What are the four basic components of the marketing mix : What external environmental factors affect strategic marketing decisions? What are the four basic components of the marketing mix?

How business law concepts apply today or in the future : What new developments do you think will present the need to rethink and re-evaluate how business law concepts apply today or in the future?

User Account

All Pages