Due to high levels of vacation traffic there is a need for building a new bridge across a river. It can either be a permanent steel bridge or a temporary system that will last 15 years. The steel bridge will have an initial cost of $50 million and must be resurfaced every 10 years at a cost of $1.4 million. The annual inspection and operating costs are estimated to be $80,000. The first possible temporary bridge will have an initial cost of $7 million, annual operating costs of $120,000 and a salvage value of $1 million. The second possible temporary bridge will have an initial cost of $6 million, annual operating costs of $100,000 and a salvage value of $1.2 million. It also needs to be resurfaced every 5 years for 400 K. Compare the three alternatives using annual worth analysis and an interest rate of 12% per year. Cash flow, $ First cost Annual cost Resurfacing cost Salvage value Life, years Steel Bridge 50 M 80 K 1.4 M Temporary Temporary bridge 1 bridge 2 7M 6M 120 K 100 K 400 K 1M 1.2M 15 15 o