How much will nit cost the state to fund the project

Reference no: EM13314252

Northern Tundra Telephone (NIT) has received a contract to install emergency phones along a new 100-mile section of the Snow-Moose Turnpike. Fifty emergency phone systems will be installed about 2 miles apart. The material cost of a unit is $125. NTT will need to run underground communication lines that cost NTT $7500 per mile (including labor) to install. There will also be a one-time cost of $10,000 to network these phones into NTT's current communication system. You are asked to develop a cost estimate of the project from Nit's perspective. If NTT adds a profit margin of .35% to its costs, how much will it cost the state to fund the project?

Reference no: EM13314252

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