Question: solve the following and present the solution in structured manner a. Payback period b. Profitability index c. Internal Rate of Return d. Break-even Analysis (if

solve the following and present the solution in structured manner

a. Payback period

b. Profitability index

c. Internal Rate of Return

d. Break-even Analysis (if applicable)

e. Depreciation schedules (use one method only) f. PW, AW, or FW Analysis (use one method only)

A city is considering extending the runways of its municipal airport so that commercial jets can use the facilities. The land necessary for the runway extension is currently a farmland that can be purchased for BD350,000. Construction cost for the runway extension are projected to be BD600,000 and the additional annual maintenance costs for the extension are estimated to be BD22,500. If the runways are extended, a small terminal will be constructed at a cost of BD250,000. The annual operation and maintenance cost for the terminal are estimated at BD75,000. Finally, the projected increase in flight will require he addition of two air traffic controllers at an annual cost of BD100,000.

the question is compeleted just answer the question with the given in case 2

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