Question: A city engineer knows that she will need $25 million in 3 years to implement new automated toll booths on a toll road in the

A city engineer knows that she will need $25 million in

A city engineer knows that she will need $25 million in 3 years to implement new automated toll booths on a toll road in the city. Traffic on the road is estimated to be 3 million vehicles per year. How much per vehicle should the toll be to cover the cost of the toll booth replacement project in 3 years? Interest is 8%. (Simplify your analysis by assuming that the toll receipts are received at year end as a lump sum.)

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