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A private company is considering building a toll bridge that it estimates will cost $100 M, last 50 years, carry 8,300 vehicles per day, charge
A private company is considering building a toll bridge that it estimates will cost $100 M, last 50 years, carry 8,300 vehicles per day, charge a $5 toll, and have annual operation and maintenance costs of $4 M. (a) Estimate the annual revenue. (b) Calculate the PW using MARR = 10 %. (c) Based on the present worth determine for part (a), is this a wise investment if the company only pursues projects that return 10 % or more? Show your work!
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