Question: Hello, can someone please help me out with this question. Please include your working so that I can see how to get the answer Thanks
Hello, can someone please help me out with this question. Please include your working so that I can see how to get the answer
Thanks
6. You have been asked to determine the toll that should be charged per car for the following situation. A loan is being made to a company that will build a toll road and expects to recoup its loan and the costs of the first 10 years (no profit during this time). The number of cars expected to go through the toll booth is 1,153,325 cars per month. If the value of the construction loan is $50M and the operating and maintenance costs per month are $1.5M, what should the toll per car be to cover all of these costs for 10 years? The nominal annual discount rate is 15%, compounded monthly. [5 points]
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