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By building a bridge over a ravine, a state department of transportation can shorten the time it takes to drive through a mountainous area. Estimates

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By building a bridge over a ravine, a state department of transportation can shorten the time it takes to drive through a mountainous area. Estimates of costs and benefits (due to decreased travel time, fewer accidents, reduced gas usage, etc.) have been prepared. Should the bridge be built? Use the benefit-cost ratio method of comparison. Simple yeso answer will not qualify for credit. You will have to show detail calculation to support your yeso answer. (Capitalized cost is defined as the present worth of a constant annual cost over an infinite analyst's period] Initial cost=$40M Capitalized cost of perpetual annual maintenance = $12M Capitalized value of annual user benefits =S49M Residual value = $0

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