PROBLEM-4: $200 million will be paid initially for a highway leased for 40 years. The highway will be serviced for $2.5 million each year (excluding years of maintenance of 5 million and 10 million), with $5 million of maintenance to be done every 5 years (excluding years of investment of 10 million). $10 million in renovations will be made every 10 years. When the deal is over, the company will be reimbursed $50 million. Ifi= 5%, what would be the equivalent of the money spent on this agreement at the end of the fairy od? FW= -1501 million dollars ¤ FW=-$1078 million FW=-2234 million dollars FW=-1764 million dollars FW= -3124 million dollars
PROBLEM-4: $200 million will be paid initially for a highway leased for 40 years. The highway will be serviced for $2.5 million each year (excluding years of maintenance of 5 million and 10 million), with $5 million of maintenance to be done every 5 years (excluding years of investment of 10 million). $10 million in renovations will be made every 10 years. When the deal is over, the company will be reimbursed $50 million. Ifi= 5%, what would be the equivalent of the money spent on this agreement at the end of the fairy od? FW= -1501 million dollars ¤ FW=-$1078 million FW=-2234 million dollars FW=-1764 million dollars FW= -3124 million dollars
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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