A 100 km toll way costs 5m per km to build the bonds are, Ask an Expert

Economics

A 100 KM toll way costs $5M per km to build. The bonds are for 20 years and pay 10 percent per year [(A/P, 10%,20) = 0.1175]. If annual maintenance costs are $1000 per km, and 20000 vehicles use the toll way every day, what toll needs to be charged to break even?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91238350

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