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2. (35 points) Two sites are under consideration for a bridge over a small river. The north site required a suspension bridge. The south site

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2. (35 points) Two sites are under consideration for a bridge over a small river. The north site required a suspension bridge. The south site has a much shorter span, allowing for a truss bridge, but it would require new road construction. The suspension bridge will cost $450 million with annual inspection and maintenance costs of $350,000. In addition, the concrete deck would have to be resurfaced every 10 years at a cost of $1,000,000. The truss bridge and approach roads are expected to cost $250 million and have annual maintenance costs of $200,000. This bridge would have to be painted every 5 years at a cost of $400,000. In addition, the bridge would have to be sandblasted every 10 years at a cost of $1,800,000. The cost of purchasing right-of-way is expected to be $20 million for the suspension bridge and $150 million for the truss bridge. Determine which alternative should be chosen on the basis of the capitalized cost if the interest rate is 6% per year. (Please show your cash flow diagram for each alternative. Note: Capitalized cost, CC, is the present worth of an alternative that will last "forever".)

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