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A bridge would cost $200 million to build (this cost must be incurred now). After it's built, starting next year, the bridge will last for
A bridge would cost $200 million to build (this cost must be incurred now). After it's built, starting next year, the bridge will last for 60 years. Each year when the bridge is in use, we expect it to generate $5 million worth of benefits and cost $1 million per year to perform maintenance. The interest rate is 2%. Should we build this bridge? Also explain your decision (to build or not to build).
How would i figure this out?
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