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Engineering Economy Lesson. A toll bridge across the Mississippi River is being considered as a replacement for the current I-40 bridge linking Tennessee to Arkansas.
Engineering Economy Lesson. A toll bridge across the Mississippi River is being considered as a replacement for the current I-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be $17,600,000, and $317,000 per year in operating and maintenance costs are anticipated. In addition, the bridge must be resurfaced every fifth year of its 25-year projected life at a cost of $1,130,000 per occurrence (no resurfacing cost in year 25 ). Revenues generated from the toll are anticipated to be $2,200,000 in its first year of operation, with a projected annual rate of increase of 1.75% per year due to the anticipated annual increase in traffic across the bridge. Assuming zero market (salvage) value for the bridge at the end of 25 years and a MARR of 8% per year, should the toll bridge be constructed? Also, assume that the initial surfacing of the bridge is included in the initial investment costs of the structure. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. The benefit-cost ratio of the project with PW is (Round to two decimal places.) dge linking ghway syste d to be the bridge rfacing cost on, with a pr pridge. Assu the toll bridg t costs of the 8% per year dge linking ghway system d to be the bridge mu urfacing cost in on, with a proje pridge. Assumi the toll bridge t costs of the 8% per year
Engineering Economy Lesson.
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