$(30$ points$)$ A toll bridge across the 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 costs of the structure are

estimated to be $$17,500,000,$ and $$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 life at a cost of $$1,250,000$ per occurrence $($no resurfacing cost in year $30).$

Revenues generated from the toll are anticipated to be $$2,500,000$ in its first year of

operation, with a projected annual rate of increase of $2\mathrm{.}25\%$ 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 a MARR of $10\%$ per year, should the toll

bridge be constructed?