Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. do with full worked solutions and dont forget the

do with full worked solutions and dont forget the scrap value in calculations 5....

50.1K

Verified Solution

Question

Finance

do with full worked solutions and dont forget the scrap value in calculationsimage

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students