A highway bridge is being considered for replacement. The new bridge would cost $X

and would last for 20 years. Annual maintenance costs for the new bridge are estimated

to be $24,000. People will be charged a toll of $0.25 per car to use the new bridge.

Annual car traffic is estimated at 400,000 cars. The cost of collecting the toll consists of

annual salaries for five collectors at $10,000 per collector. The existing bridge can be

refurbished for $1,600,000 and would need to be replaced in 20 years. There would be

additional refurbishing costs of $70,000 every five years and regular annual maintenance

costs of $20,000 for the existing bridge. There would be no toll to use the refurbished

bridge. If MARR is 12% per year, what is the maximum acceptable cost (X) of the new

bridge?