Question

Discount rate is 4% and total n = 30 years. Given PW of investment = $71.89...

Discount rate is 4% and total n = 30 years. Given PW of investment = $71.89 ; PW of cost = $26.87 ; PW of benefits = $167.41 and PW of disbenefits = $80.12 I want to know how calculate PW of investment, cost, benefit and disbenefits separately based upon the following information: Initial investment: $88 million distributed over 5 years; $4 million now and in year 5 and $20 million in each of years 1 through 4. Annual M&O cost: $1 million per year, plus an additional $3 million each fifth year, including year 30. Annual revenue/benefits: Include tolls and retail/commercial growth; start at $2 million in year 1, increasing by a constant $0.5 million annually through year 10, and then increasing by a constant $1 million per year through year 20 and remaining constant thereafter. Estimable disbenefits: Include loss of business income, taxes, and property value in surrounding areas; start at $10 million in year 1, decrease by $0.5 million per year through year 21, and remain at zero thereafter.

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Answer #1

Please check in your question that values of PW investment and PW of Benefits might be different as calculation shows different result for them. Please seethrough the excel photo

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