Question: Refer back to Problem 10-7. Suppose that the toll bridge can be redesigned such that it will have a (virtually) infinite life. MARR remains at

Refer back to Problem 10-7. Suppose that the toll bridge can be redesigned such that it will have a (virtually) infinite life. MARR remains at 10% per year. Revised costs and revenues (benefits) are given as follows:
Capital investment: $22,500,000
Annual operating and maintenance costs: $250,000
Resurface cost every seventh year: $1,000,000
Structural repair cost, every 20th year: $1,750,000
Revenues (treated as constant-no rate of increase): $3,000,000
a. What is the capitalized worth of the bridge?
b. Determine the B-C ratio of the bridge over an infinite time horizon.
c. Should the initial design (Problem 10-7) or the new design be selected?

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