Question
The cost of the bridge, which is planned to be built on the intercity highway, is thought to be 2 million dollars. It is estimated
The cost of the bridge, which is planned to be built on the intercity highway, is thought to be 2 million dollars. It is estimated that the construction of the bridge will take 20 years. Construction costs will be covered by the state. Operation and maintenance costs are estimated to be $180000 per year. The benefits to the public are estimated to be $900000 per year. Construction of the bridge will result in an estimated cost of $250000 per year to the general public. The project requires a 10% return. Determine the B/C ratio for the project. Indicate any assumptions made about benefits or costs.
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