Question: give correct option A city has signed a contract with a builder to construct a bridge to reduce the traffic congestion into the downtown core

give correct option
give correct option A city has signed a contract with a builder

A city has signed a contract with a builder to construct a bridge to reduce the traffic congestion into the downtown core area. The nature of this contract is following the BOT (Build, Operate, and Transfer) concept. The builder will build the bridge, operate the bridge for 20 years by collecting tolls, and transfer the bridge back to the city at the end of the 20 years. The builder estimated that the construction of this bridge will cost $125 million today and the annual net revenue (tolls collected minus maintenance expense) is estimated to be $50 million per year (which remains the same for 20 years). For the builder, what is the payback period for the bridge project? Assume both the tolls collected and the maintenance expenses paid occurred throughout the year. 2.0 Years 2.5 Years 3.0 Years 3.5 Years 4.0 Years

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