Dear editor,
I see the proposed cost of the cable ferry system to Denman Island has finally come out at about $45 million.
These capital expenditures will take place within about two years and will represent current dollars. These costs will be offset by estimated "savings" of $80 million over 40 years.
But will they?
Not if the savings were not expressed in current dollars, i.e. the net present value of them. A savings of $2 million received 40 years from now is not the net present value in 2014 dollars.
Yes, and the savings include fuel, as they should with a cable system, but what will power the cable system which will represent new costs?
Just asking.
G. Hood,
Buckley Bay