In order to improve evacuation routes out of New Orleans in the event of another major disaster such as Hurricane Katrina, the Louisiana Department of Transportation (L-DoT) is planning to construct an additional bridge across the Mississippi River. The department uses an interest rate of 8% and plans a 50-year life for either bridge. Which design has the better present worth?

All Costs in $M Suspension Bridge Cantilever Bridge

Initial construction $585 $470

Land acquisition 120 95

Annual O&M 2 3

Annual increase 4% 0.3

Major maintenance 185 210

(Year 25)

Salvage cost 30 27