A city engineer has estimated the annual toll revenues from a proposed highway construction project over 20 years as follows: An = ($2,000,000)(n)(l.06)n-1 n = 1.2 .... ,20.To determine the amount of debt financing through bonds, the engineer was asked to present the estimated total present value of toll revenue at an interest rate of 6%. Assuming annual compounding, find the present value of the estimated toll revenue.
A city engineer has estimated the annual toll revenues from a proposed highway construction project over 20 years as follows: An = ($2,000,000)(n)(l.06)n-1 n = 1.2 .... ,20.To determine the amount of debt financing through bonds, the engineer was asked to present the estimated total present value of toll revenue at an interest rate of 6%. Assuming annual compounding, find the present value of the estimated toll revenue.
Traffic and Highway Engineering
5th Edition
ISBN:9781305156241
Author:Garber, Nicholas J.
Publisher:Garber, Nicholas J.
Chapter2: Transportation Systems And Organizations
Section: Chapter Questions
Problem 3P
Related questions
Question
A city engineer has estimated the annual toll revenues from a proposed highway construction project over 20 years as follows:
An = ($2,000,000)(n)(l.06)n-1
n = 1.2 .... ,20.
To determine the amount of debt financing through bonds, the engineer was asked to present the estimated total present value of toll revenue at an interest rate of 6%. Assuming annual compounding, find the present value of the estimated toll revenue.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.Recommended textbooks for you
Traffic and Highway Engineering
Civil Engineering
ISBN:
9781305156241
Author:
Garber, Nicholas J.
Publisher:
Cengage Learning
Traffic and Highway Engineering
Civil Engineering
ISBN:
9781305156241
Author:
Garber, Nicholas J.
Publisher:
Cengage Learning