The City Council of a fast growing city in the west of Canada is planning to construct a new express way to help improvethe traffic flow in the city. Construction is to start in 2020 and is expected to last four years at a cost of $40 million peryear. After construction is completed, the regular cost of operation and maintenance is expected at $3 million for the firstyear, increasing by 1%.a) Draw a cash flow diagram for the new express way project (from present till end of year 2063).b) Determine the Present Worth of the project.c) Determine the Annual Worth of the project (Hint: make use of the PW calculated in b).

Step 1: Step 2: Step 3: Step 4:

Answered: The City Council of a fast growing city…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer question 4 with details on how to do it. Thank you.
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