Last modified on 29 July 2008, at 21:29

Fundamentals of Transportation/Evaluation/Problem

TProblem
Problem:

A new transportation project is proposed to the city. This project is a form of "guide wire", where cars can hook to these moving, below-ground wires and be transported for free around town. This project is proven to reduce gas consumption by $5 million in its completion year. The city's preferred contractor says that it will take 10 years to build the thing and cost $500,000 a year, which is "perfect" because costs would add up to the benefit. Knowing that inflation is 3 percent, as an expert evaluator, is this a wise decision?