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The construction of a new runway at an airport will cost $30 million, to be paid with capital development bonds over a 20-year period. The runway is expected to decrease the average aircraft delay from 9 to 5 min. The average annual demand is expected to be 200,000 operations, and the average operating cost of an aircraft is $1500 per hour. The discount rate is 10 percent.

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Question: Compare the annual benefits to the annual costs of this runway construction project.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174826

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