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Maslowich
3 years ago
8

The mayor of your city is considering building a new toll road to reduce congestion. The cost of the toll road is $10 million an

d is estimated to generate a profit (from tolls collected less expenses collecting the tolls and maintaining the road) of $2 million per year. A. What is the present value of the first year's profit of $2 million? (if discount rate is 8% (0.08)) (2points) B. If the discount rate is 8%, how many years would it take before the road is paid for? The number of years it will take to recover the initial $10 million investment. (8points)
Business
1 answer:
scoray [572]3 years ago
7 0
Recover because my mom like money and the discount rate is 8%
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Answer:

The answer is "The first choice".

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