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Question: problems project development economics 1 a highway project is expected...

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PROBLEMS: PROJECT DEVELOPMENT ECONOMICS 1. A highway project is expected to cost $2,500,000 initially. The annual operating and maintenance cost after the first year is $2,500 and will increase by $550 each year for the next 10 years. At the end of the fifth year, the project roadway must be resurfaced at a cost of $400,000. a. Calculate the present worth of costs for this project if the annual interest rate is 8 percent. b. Convert the value obtained in Qu. la to equivalent uniform annual costs.
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