A Chinese Official Is Considering Construction of a Gondola Lift

question 1

Short Answer

A Chinese official is considering construction of a gondola lift system that transports visitors from the tops of the mountain peaks to the valley at one of the National Forest Parks in China. The lift system is expected to last for 20 years. Annual maintenance cost of
$260,000 and inspection and repaint costs of $45,000 every 5 years are expected. Annual benefits are estimated to be $420,000. If an interest rate of 17% per year and a B- C ratio of at least 2.5 are used, what is the maximum investment cost allowed for the lift system?

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Definitions:

Medical Malpractice

A specific form of negligence that involves a medical professional's failure to provide the standard of care, resulting in harm to a patient.

Agent's Employment

The condition or period in which an individual acts on behalf of another person or entity, often in a business or professional capacity.

Authority

The authority or capacity to issue commands, make choices, and ensure compliance.

Disclosed

Disclosed involves the revelation or sharing of previously private or confidential information with parties that need or request it.