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I need this solution on urgent basis thanks Q. 3: A bridge across the Swat River is being considered as a replacement for the CLO-1
I need this solution on urgent basis thanks
Q. 3: A bridge across the Swat River is being considered as a replacement for the CLO-1 (7) expansion of Swat Expressway project. Apply B/C ratio method to evaluate the project if the investment cost of the structure are projected to be Rs. 17,500,000 and yearly operation and maintenance costs amount to Rs. 325,000. In addition, the bridge must be resurfaced every 5th year of its 30-year life at the cost of Rs. 12, 50,000 per occurrence (no resurfacing cost in year 30). The estimated yearly revenue is Rs. 25,00.000. The market salvage value at the end is assumed to be zero and MARR is 10% yearly. Find whether a) Should the bridge be constructed based on economic justification? b) Find the least MARR that would just make the project economically justified for considerationStep by Step Solution
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