Question
For a proposed bridge project, FDOT has estimated the capital investment, annual O&M cost, net annual benefit, and salvage value under three different scenarios (optimistic,
For a proposed bridge project, FDOT has estimated the capital investment, annual O&M cost, net annual benefit, and salvage value under three different scenarios (optimistic, most likely, and pessimistic). Assume the useful life of the bridge is 50 years and the interest rate is 4%, what is the estimated average B/C ratio of the proposed project?
Capital investment
ral
Annual O&M costs
Salvage value
Annual benefit
Optimistic
$9,787,429
$854,960
$1,600,000
$2,033,528
Most Likely
$11,628,574
$927,203
$1,500,000
$1,838,236
Pessimistic
$14,638,050
$1,269,950
$1,400,000
$1,791,369
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