Cost of the Plan projects Cost of the Land and expropriation Cost of the Roads and preparation costs Cost of the Retaining wall Cost of the Filling and ground consolidation Cost of the Treatment facilities 520,000 TL 1,680,000 TL 1,300,000 TL 15,800,000 TL 3,650,000 TL 10,900,000 TL 17,500,000 TL Cost of the 70 km 1.25 m diameter transmission line Annual repair-maintenance costs are increased by 1,250,000 TL in the first year and by 6% every year. Other expenses are increasing by 500,000 TL in the first year and by 60,000 TL every year. The price per cubic meter of water is 1,750 TL Useful life 30 years Interest rate 20%

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Cost of the Plan projects
Cost of the Land and expropriation
Cost of the Roads and preparation costs
Cost of the Retaining wall
Cost of the Filling and ground consolidation
Cost of the Treatment facilities
520,000 TL
1,680,000 TL
1,300,000 TL
15,800,000 TL
3,650,000 TL
10,900,000 TL
17,500,000 TL
Cost of the 70 km 1.25 m diameter transmission line
Annual repair-maintenance costs are increased by 1,250,000 TL in the first year and by 6%
every year.
Other expenses are increasing by 500,000 TL in the first year and by 60,000 TL every year.
The price per cubic meter of water is
1,750 TL
Useful life
30 years
Interest rate
20%
What should be the minimum amount of water to be sold per year to cover the costs of this
dam?
Transcribed Image Text:Cost of the Plan projects Cost of the Land and expropriation Cost of the Roads and preparation costs Cost of the Retaining wall Cost of the Filling and ground consolidation Cost of the Treatment facilities 520,000 TL 1,680,000 TL 1,300,000 TL 15,800,000 TL 3,650,000 TL 10,900,000 TL 17,500,000 TL Cost of the 70 km 1.25 m diameter transmission line Annual repair-maintenance costs are increased by 1,250,000 TL in the first year and by 6% every year. Other expenses are increasing by 500,000 TL in the first year and by 60,000 TL every year. The price per cubic meter of water is 1,750 TL Useful life 30 years Interest rate 20% What should be the minimum amount of water to be sold per year to cover the costs of this dam?
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