The railroad for subcontracts for maintenance of its crossing gates at $11,500/yr. Beginning 4 yrs from now, however, cost are expected to increase by $1,000/yr into the foreseeable future (that is $12,500 4 yrs from now, $13,500 5 yrs from now and so on) The overpass will costs $1.4 million (now) to build, but it will eliminate 100% of the auto-train collisions that have cost an average of $250,000/yr. If the railroad uses a 10 yr study period & an interest rate 0f 10%/yr determine whether the railroad should build the overpass.
PLEASE provide steps/explanations when possible. Thank You so much!!!
PLEASE provide steps/explanations when possible. Thank You so much!!!