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

Economics

A 100 KM tollway 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 tollaway every day, what toll needs to be charged to break even?

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Business Economics, Economics

Category:- Business Economics
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