Question: Problem 4: Net Present Value In the US, major infrastructure projects are often analyzed using a 50-year life-span. The con- struction of an overpass to

 Problem 4: Net Present Value In the US, major infrastructure projects

Problem 4: Net Present Value In the US, major infrastructure projects are often analyzed using a 50-year life-span. The con- struction of an overpass to replace a road-level railroad crossing has a few significant benefits. A railroad overpass eliminates traffic delays, eliminates the need for trains to sound their horns when approaching the intersection, and also provides a minor improvement in safety. If the annual benefits from eliminating traffic delays are valued at 320,000 USD, the annual estimated benefit of eliminating horn noise is 260,000 USD, and the value of improved safety is 10,000 USD, find the total discounted benefit using a 5 percent discount rate. if the project costs 10,000,000 USD in present value, is the investment worthwhile

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