Southeastern Pennsylvania Transportation Authority (SEPTA) has just opened a new route connecting major tourist sites around Philadelphia. The Independence Line has the following data • A capital investment of $63 million • An expected operating and maintenance expenses of $11 millon per year - The final salvage value at the end of a 30-year life is negligible Revenue generated by each customer is $11. • Assume there are 365 days in a year • The MARR is 6% compounded annually What is the total annual cost of this route? How many riders per day are needed for this route to break even?
Southeastern Pennsylvania Transportation Authority (SEPTA) has just opened a new route connecting major tourist sites around Philadelphia. The Independence Line has the following data • A capital investment of $63 million • An expected operating and maintenance expenses of $11 millon per year - The final salvage value at the end of a 30-year life is negligible Revenue generated by each customer is $11. • Assume there are 365 days in a year • The MARR is 6% compounded annually What is the total annual cost of this route? How many riders per day are needed for this route to break even?
Chapter1: Making Economics Decisions
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![Southeastern Pennsylvania Transportation Authority (SEPTA) has just opened a new route connecting major tourist sites around Philadelphia.
The Independence Line has the following data
• A capital investment of $63 million,
• An expected operating and maintenance expenses of $11 milfon per year
• The final salvage value at the end of a 30-year life is negligible
• Revenue generated by each customer is $11.
• Assume there are 365 days in a year
• The MARR is 6% compounded annualy
What is the total annual cost of this route?
How many riders per day are needed for this route to break even?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac1115be-8d6b-4bbb-8e4f-7d49c1582c38%2F1975d07f-9d16-4d3a-af33-9f280eb989ba%2F18ehte_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Southeastern Pennsylvania Transportation Authority (SEPTA) has just opened a new route connecting major tourist sites around Philadelphia.
The Independence Line has the following data
• A capital investment of $63 million,
• An expected operating and maintenance expenses of $11 milfon per year
• The final salvage value at the end of a 30-year life is negligible
• Revenue generated by each customer is $11.
• Assume there are 365 days in a year
• The MARR is 6% compounded annualy
What is the total annual cost of this route?
How many riders per day are needed for this route to break even?
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