Gce Model Questions Vol1 2017 Economics Question 9
Practice objective / multiple choice question 9 from the 2017 Gce Model Questions Vol1 Economics examination.
A new railway line requires an upfront capital cost of £800 million. Operating costs are £20 million per year. Each passenger pays £5 per trip. In the first year 30 million passengers are expected, and passenger numbers grow at 3 % per year. Using a discount rate of 5 % per year, after how many whole years will the project's net present value become positive?
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About This Question
This is Gce Model Questions Vol1 2017 Economics Question 9. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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