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 calculationsdo with full worked solutions and dont forget the scrap value in

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

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