What is the annualized cost of this project

Assignment Help Business Economics
Reference no: EM13734303

The Rustin Transportation Planning Board estimates the cost of upgrading a 4-mile section of 4-lane highway from public use to toll road to be $41 million now. Resurfacing and other maintenance will cost $820,000 every 4 years. A toll road would require four toll-takers be on duty 24 hours a day. Toll-takers are paid $11.14 per hour. The Board uses an interest rate of 5% per year for its long term planning.

(a) What is the capitalized cost of this project?

(b) What is the annualized cost of this project?

(c) A traffic study has shown that approximately 18,000 cars will pass through the toll gates each day. How much should the toll per car be (to the nearest $0.05) in order for this project to be self-supporting?

Reference no: EM13734303

Questions Cloud

Marginal and the average propensity to consume : Use your own life experience to explain the difference between the marginal and the average propensity to consume. In what circumstances could more saving be bad for the economy as a whole (search the Internet for the “paradox of thrift”)?
Determine which of these statements are normative : Determine which of these statements are normative and which are positive and explain why you place them in the normative or positive category.
Difference between normative and positive economics : Explain the difference between normative and positive economics. Determine which of these statements are normative and which are positive and explain why you place them in the normative or positive category.
Significantly lower financial savings for all individuals : As a general rule, is it safe to assume that a lower interest rate will encourage significantly lower financial savings for all individuals? Explain.
What is the annualized cost of this project : The Rustin Transportation Planning Board estimates the cost of upgrading a 4-mile section of 4-lane highway from public use to toll road to be $41 million now. Resurfacing and other maintenance will cost $820,000 every 4 years. A toll road would requ..
Rather than on the quantity demanded of other goods : As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of other goods? Explain.
Find the profits of the dominant firm : Suppose that the market demand for organs is Q = 800-3P, where Q = QF + QD and Q is the total quantity, QF is the quantity supplied by fringe firms and QD is the quantity supply by the dominant firms. Find the profits of the dominant firm. Find the p..
A new and better fertilizer is developed : Construct a PPF for a country that produces food and video games and faces increasing opportunity costs. Show how the PPF changes given the following events.
Change in demand or a change in quantity demanded : State whether the following will result in a change in demand or a change in quantity demanded. Explain.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Qa survey of households in a small town showed that in 850

q.a survey of households in a small town showed that in 850 of 1200 sampled households at least one member attended a

  Illustrate if there were only one supplier of diamonds

Illustrate if there were only one supplier of diamonds, elucidate what would be the price and quantity

  Calculate how hurricane affects the income of each worker

Calculate how the hurricane affects the income of each worker and of each remaining orchard owner. What happens to the income of Ectenia as a whole?

  What happens to the value of the owners equity

Illustrate what happens to the value of the owners' equity in this bank. Elucidate how large a decline in the value of bank assets would it take to reduce this bank's capital to zero.

  Bureaucratic organizational structure

The bureaucratic form of government is so prevalent in public agencies and tends to result in a slower paced, less consumer oriented management

  Prisoner''s dilemma is a game

Prisoner's dilemma is a game that has been and continues to be studied by people from a variety of disciplines, from biology to sociology to public policy. Prisoner's dilemma is believed to be one of the most powerful metaphors in all of human behavi..

  Risk premium it charges on its loans

The risk premium it charges on its loans is classified as profits in economics.

  Cost of delay

The cost of delay is an important expense to consider when redesigning a procedure. In addition, there is uncertainty in identifying future needs and new procedure that the space will need too accommodate.

  Microsoft wants to sell more copies

Microsoft wants to sell more copies the additional income from each additional copy it sells.

  Q1 for handling a crisis of epic proportion hurricane flood

q1. for handling a crisis of epic proportion hurricane flood blizzard forest fire and so forth which economic system is

  Explain how changes in equilibrium occur

explain how changes in equilibrium occur as a result of changes in fiscal and monetary policy.

  Illustrate what would drive the market toward equilibrium

If the actual price in this market were below the equilibrium price, illustrate what would drive the market toward the equilibrium.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd