How do the benefit-cost analysis results change if the discount rate is 7% what about 2 %.

CASE 7-1 Some Rough Cost-Benefit Numbers for a "Bridge to Nowhere" A widely publicized federal earmark in the 2006 transportation appropriation bill $223 million for a bridge intended to provide access to Ketchikan, Alaska's airport on lightly populated Gravina Island. The project had the misfortune to e labeled the "Bridge to Nowhere" when the earmark came to light in the 2008 presidential campaign. It is possible to do some rough cost-benefit analysis wa on the project. Gravina Island has a population of around 50, so most of the bridge traffic would likely be those using the airport. The island was not inaccessible without the bridge. A ferry serves the island, with ferries leaving every half hour. The primary impact from the bridge would be to reduce travel time on the trips. It has been estimated that the drive to the airport from Ketchikan would take 13 minutes, compared to 27 minutes by ferry. Therefore, the time saving is around 15 minutes per passenger. Ketchikan is a port for cruise ships, which dock on the mainland, so some of the bridge traffic would be ship passengers either joining or leaving the cruise ships. Airine enplanements/deplanements (total passengers coming and going through the Airline e