QUOTE(darkhunter16 @ Jan 16 2020, 04:31 PM)
Original toll end in year 2038? Mean 18 more years.
Assume you pay 18 years 3.60 *2 each day. Total = 3.6*2*365*18= RM 47304
Original toll for 18 years 4.40 *2*365*18= RM57816
If extend until 18 +20 years. Total = 3.6*2*365*38 = RM 99864!!!
Compared with 57816... 99864 increased by 1.727 times!!!!
You have to consider time value of money.
Assuming the interest rate is 3.5%. We use Excel to work out the Present Value (PV) in both cases.
Previous Case
rate = 3.5%, nper = 18, PMT = -100, FV = 0
PV = 1,319
New Case
rate = 3.5%, nper = 38, PMT = -100, FV = 0
PV = 1,709
Seems like Present Value is higher by 30% with the extension of concession
In other words, the extension is less fair to the road users.