How much could police department afford to spend on project

Reference no: EM131004338

Redflex Traffic Systems manages red light camera systems that take photographs of vehicles that run red lights. Red light violations in El Paso, TX, result in fines of $75 per incident. A two-month trial period revealed that the police department could expect to issue 300 citations per month per intersection. If Redflex offered to install camera systems at 10 intersections, how much could the police department afford to spend on the project if it wanted to recover its investment in 2 years at an interest rate of 0.25% per month?

Reference no: EM131004338

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