anonymous
  • anonymous
Question Below!
Mathematics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
jamiebookeater
  • jamiebookeater
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
(10 points) The city of Middleville is considering offering public bus service. Setting up the service will cost the city $1.1M (where M stands for million). The useful life of the buses is 27 years. Annual maintenance of the buses would cost $86,000 per year and they would need a major overhaul in year 21 that will cost a total of $560,000. This overhaul is in addition to the annual maintenance. Annual labor and administrative costs will begin at $120,000 in year 1 and grow at 2.5% per year thereafter. The buses will generate a revenue of $170,000 in year 1 and it will grow at 4.5% per year thereafter. Reduced parking requirements and other benefits generated by the project will save the city $270,000 per year. The salvage value (price the city can get in the future after maintenance) of the used buses in year 27 is expected to be $290,000. What is the NPV of the bus proposal? The city does not pay taxes and the discount rate is 5.9%. Assume that all cash flows except initial investments happen at the end of the year and you are strongly encouraged to use a spreadsheet to solve this problem.
sohailiftikhar
  • sohailiftikhar
(y) nice Question ...
anonymous
  • anonymous
Please help

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

anonymous
  • anonymous
@.Sam.
sohailiftikhar
  • sohailiftikhar
it's very lengthy to read ...

Looking for something else?

Not the answer you are looking for? Search for more explanations.