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Business, 06.12.2019 04:31 badaxz

Atoll bridge across mississippi river is being considered as a replacement for the current i-40 bridge linking tennessee to arkansas. because this bridge, if approved, will become a part of the u. s. interstate highway system, the b-c ratio method must be applied in the evaluation. investment cost of the structure are estimated to be $17,000,000 and $325,000 per year in operating and maintenance costs are anticipated. in addition, the bridge must be resurfaced every fifth year of its 30-year projected lie at a cost of $1,250,00per occurrence (no resurfacing cost in year 30). revenues generated from the roll are anticipated to be $2,500,000 in its first year of operation, with a projected annual rate of increase of 2.25% per year due to the anticipated annual increase in traffic across the bridge. assuming zero market (salvage) value for the bridge at the end of 30 years and marr 10% per year, should the toll bridge be constructed?

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