Follow the BC Ferries money

Dear editor,

I see the proposed cost of the cable ferry system to Denman Island has finally come out at about $45 million.

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

 

We are experiencing technical difficulties with our commenting platform and hope to be up and running again soon. In the meantime, you can still send us your thoughts on Facebook or Twitter, or submit a letter to the editor.