Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from January 2018 to December 2019, for reconstruction at a cost of $535 million. If the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. Suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. The state department of transportation had to make its decision in 2017, one year before the start of construction (so that the first payment was one year away). So the department of transportation had the following choices:(i) Close the highway during construction, at an annual cost of $267.5 million per year for two years.(ii) Keep the highway open during construction, at an annual cost of $200 million per year for four years.a. Suppose the interest rate is 10%. Calculate the present value of the costs incurred under each plan. Which reconstruction plan is less expensive?b. Now suppose the interest rate is 80%. Calculate the present value of the costs incurred under each plan. Which reconstruction plan is now less expensive?
Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from”
by | Mar 12, 2022 | Uncategorized
We offer the best custom paper writing services. We have done this question before, we can also do it for you.
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How It Works
- Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER INFORMATION" section.
- Fill in your paper’s academic level, deadline and the required number of pages from the drop-down menus.
- Click “PREVIEW” to enter your registration details and get an account with us for record keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.