(A) ** 10 million
(B) 40 million
(C) 250 million
(D) 120 million
EXPLANATIONS BELOW
Concept note-1: -Direct construction costs, however, were not the only costs of the canal. The U.S. also spent $40 million to purchase the assets of the New Panama Canal Company and $10 million for the Panamanian government. In addition, the U.S. incurred an implicit interest cost over the construction decade.
Concept note-2: -In his new role, Bunau-Varilla negotiated the Hay-Bunau-Varilla Treaty of 1903, which provided the United States with a 10-mile wide strip of land for the canal, a one-time $10 million payment to Panama, and an annual annuity of $250, 000. The United States also agreed to guarantee the independence of Panama.
Concept note-3: -A payment of $10 million secured a canal zone and rights to build. Bunau-Varilla, installed as Panamanian minister to the U.S., signed a treaty favorable to American interests.
Concept note-4: -Nearly three billion U.S. dollars was the toll revenue generated by the Panama Canal during the fiscal year 2021 (ranging from October 2020 to September 2021).