Question
The city council is conducting cost-benefit analysis for a new bridge. The construction materials for the bridge will cost $80 million. The maintenance costs are
The city council is conducting cost-benefit analysis for a new bridge. The construction materials for the bridge will cost $80 million. The maintenance costs are estimated at $7 million per year. The hourly wage for construction workers on this project is $19.50. These workers could have earned $15.50 per hour in other jobs in the community. Workers will spend 0.5 million hours completing the project. The new bridge is expected to save two lives each year, and the value of a life is estimated at $9 million on average. It is also expected that drivers will save approximately 225,000 hours of driving time each year. What is the first-year benefit?
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