Question
Determining the Capitalized Worth of a Bridge A new bridge across the Cumberland River is being planned near a busy highway intersection in the commercial
Determining the Capitalized Worth of a Bridge A new bridge across the Cumberland River is being planned near a busy highway intersection in the commercial part of a mid-western town. The construction (first) cost of the bridge is $1,900,000 and annual upkeep is estimated to be $25,000. In addition to annual upkeep, major maintenance work is anticipated every eight years at a cost of $350,000 per occurrence. The town government?s MARR is 8% per year. (b) If the bridge has an expected life of 150 years, what is the capitalized worth (CW) of the bridge over a 150-year study period?
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