The port authorities of new york and new jersey estimate


The Port Authorities of New York and New Jersey estimate that the annual net revenues for the George Washington Bridge (GWB) will total $13M by the end of this year (t=1). At the end of three years (t=4) you expect a toll increase of 10%. Revenues will then remain constant for the next 6 years (year 4 through 10). Because the GWB is such an important artery for the New York City area, the Port Authorities would like to reinvest this revenue in a comprehensive maintenance and repair program. However, it will take two years (t=3) before plans and specifications can be developed and contracts awarded. The Port Authorities use a MARR of 7% for all public works projects. What is the annual amount the Port Authorities should expect to spend for a five-year contract, uniform cash flows starting at the end of years 3 through 7?  

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Financial Management: The port authorities of new york and new jersey estimate
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