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.

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


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