If the system is used for 800000 trips per year what would be the fair price to charge per trip?

The City of Washington is considering adding new buses for its current mass-transit system that link Show more The City of Washington is considering adding new buses for its current mass-transit system that links from the Tacoma International Airport to the clustering city destinations on non-stop basis. The total investment package is worth $10 million and expected to last 10 years with a salvage value of $850000. The annual operating and maintenance cost for buses would be $5 million during the first year and will grow by 5% each year over the previous years O&M costs thereafter. If the system is used for 800000 trips per year what would be the fair price to charge per trip? Assume that the City of Washington uses 5% interest rate for any city-sponsored project. Assume the fare will be the same for all destinations. Show less

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