Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A proposed bridge on the interstate highway system is being considered at the cost of $2 million. It is expected that the bridge will last
A proposed bridge on the interstate highway system is being considered at the cost of $2 million. It is expected that the bridge will last 20 years. Construction costs will be paid by the federal and state governments. Operation and maintenance costs are estimated to be $180,000 per year. Benefits to the public estimated to be $650,000 per year. The building of the bridge will result in an estimated dis-benefit of $250,000 per year to the general public. The project requires a 10% return. Determine the B/C ratio of the project.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started