Question: do with full worked solutions and dont forget the scrap value in calculations 5. Government is considering installation of transport options for a new tourist
do with full worked solutions and dont forget the scrap value in calculations
5. Government is considering installation of transport options for a new tourist precinct. Compute the net present value and B/C ratio using a discount rate of 6% and a planning horizon of 60 years. Which option should be chosen and why? Initial Cost ($) Revenue ($ p.a.) Maintenance ($ p.a.) Life (years) Scrap value ($) A - Monorail option 34,000,000 7,500,000 1,500,000 30 2,500,000 B - shuttle bus option 18,000,000 4,500,000 1,000,000 20 800,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
