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This is for an engineering economy class, your help is much appreciated! Let me know if it's too blurry. Atoll bridge across the Mississippi River

This is for an engineering economy class, your help is much appreciated! Let me know if it's too blurry. image text in transcribed

Atoll bridge across the Mississippi River is being considered as a replacement for the current -40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Assume that the initial surfacing of the bridge is included in the initial investment costs of the structure. a. What is the capitalized worth of the bridge (for the new design)? b. Determine the B-C ratio of the bridge over an infinite time horizon (for the new design). c. Should the initial design or the new design be selected? Click the icon to view the additional information about the initial and new designs. Click the icon view the interest and annuity table for discrete compounding when the MARR is 9% per year. a. Calculate the CW value of the bridge for the new design. CW(9%)= $ million (Round to three decimal places.) Initial design Investment costs of the structure are estimated to be $17,000,000, and $325,000 per year in operating and maintenance costs are anticipated. In addition, the bridge must be resurfaced every fifth year of its 25-year projected life at a cost of $1,130,000 per occurrence (no resurfacing cost in year 25). Revenues generated from the toll are anticipated to be $2,900,000 in its first year of operation, with a projected annual rate of increase of 2.75% per year due to the anticipated annual increase in traffic across the bridge. Assume that market (salvage) value for the bridge at the end of 25 years is zero and a MARR is 9% per year. New design Suppose that the toll bridge can be redesigned such that it will have a (virtually) infinite life. Revised costs and revenues (benefits) are given as follows: Capital investment: $23,900,000 Annual operating and maintenance costs: $263,000 Resurface cost every sixth year: $1,080,000 Structural repair cost, every 18th year: $1,770,000 Revenues (treated as constant, no rate of increase): $3,150,000 MARR remains at 9% per year. Discrete Compounding; i=9% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N N FIP PIF FA PIA AIF AIP 1 1.0900 0.9174 1.0000 0.9174 1.0000 1.0900 2 1.1881 0.8417 2.0900 1.7591 0.4785 0.5685 3 1.2950 0.7722 3.2781 2.5313 0.3051 0.3951 4 1.4116 0.7084 4.5731 3.2397 0.2187 0.3087 5 1.5386 0.6499 5.9847 3.8897 0.1671 0.2571 1.6771 0.5963 7.5233 4.4859 0.1329 0.2229 7 1.8280 0.5470 9.2004 5,0330 0.1087 0.1987 8 8 1.9926 0.5019 11.0285 5.5348 0.0907 0.1807 9 2.1719 0.4604 13.0210 5.9952 0.0768 0.1668 10 2.3674 0.4224 15. 1929 6.4177 0.0658 0.1558 11 2.5804 0.3875 17.5603 6.8052 0.0569 0.1469 12 2.8127 0.3555 20.1407 7.1607 0.0497 0.1397 13 3.0658 0.3262 22.9534 7.4869 0.0436 0.1336 112 2.8127 0.3563 20.1407 7.1867 0.0484 13 3.0658 0.3262 22.9534 7.4869 0.0436 0.1336 14 3.3417 0.2992 26.0192 7.7862 0.0384 0.1284 15 3.6425 0.2745 29.3609 8.0607 0.0341 0.1241 16 3.9703 0.2519 33.0034 8.3126 0.0303 0.1203 17 4.3276 0.2311 36.9737 8.5436 0.0270 0.1170 18 4.7171 0.2120 41.3013 8.7556 0.0242 0.1142 19 5.1417 0.1945 46.0185 8.9501 0.0217 0.1117 20 5.6044 0.1784 51.1601 9.1285 0.0195 0.1095 21 6.1088 0.1637 56.7645 9.2922 0.0176 0.1076 22 6.6586 0.1502 62.8733 9.4424 0.0159 0.1059 23 7.2579 0.1378 69.5319 9.5802 0.1044 24 7.9111 0.1264 76.7898 9.7066 0.0130 0.1030 25 8.6231 0.1160 84.7009 9.8226 0.0118 0.1018 30 13.2677 0.0754 136.3075 10.2737 0.0073 0.0973 35 20.4140 0.0490 215.7108 10.5668 0.0046 0.0946 40 31.4094 0.0318 337.8824 10.7574 0.0030 0.0930 45 48.3273 0.0207 525.8587 10.8812 0.0019 0.0919 50 74.3575 0.0134 815.0836 10.9617 0.0012 0.0912 6 0.1394 0.0144 Atoll bridge across the Mississippi River is being considered as a replacement for the current -40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Assume that the initial surfacing of the bridge is included in the initial investment costs of the structure. a. What is the capitalized worth of the bridge (for the new design)? b. Determine the B-C ratio of the bridge over an infinite time horizon (for the new design). c. Should the initial design or the new design be selected? Click the icon to view the additional information about the initial and new designs. Click the icon view the interest and annuity table for discrete compounding when the MARR is 9% per year. a. Calculate the CW value of the bridge for the new design. CW(9%)= $ million (Round to three decimal places.) Initial design Investment costs of the structure are estimated to be $17,000,000, and $325,000 per year in operating and maintenance costs are anticipated. In addition, the bridge must be resurfaced every fifth year of its 25-year projected life at a cost of $1,130,000 per occurrence (no resurfacing cost in year 25). Revenues generated from the toll are anticipated to be $2,900,000 in its first year of operation, with a projected annual rate of increase of 2.75% per year due to the anticipated annual increase in traffic across the bridge. Assume that market (salvage) value for the bridge at the end of 25 years is zero and a MARR is 9% per year. New design Suppose that the toll bridge can be redesigned such that it will have a (virtually) infinite life. Revised costs and revenues (benefits) are given as follows: Capital investment: $23,900,000 Annual operating and maintenance costs: $263,000 Resurface cost every sixth year: $1,080,000 Structural repair cost, every 18th year: $1,770,000 Revenues (treated as constant, no rate of increase): $3,150,000 MARR remains at 9% per year. Discrete Compounding; i=9% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N N FIP PIF FA PIA AIF AIP 1 1.0900 0.9174 1.0000 0.9174 1.0000 1.0900 2 1.1881 0.8417 2.0900 1.7591 0.4785 0.5685 3 1.2950 0.7722 3.2781 2.5313 0.3051 0.3951 4 1.4116 0.7084 4.5731 3.2397 0.2187 0.3087 5 1.5386 0.6499 5.9847 3.8897 0.1671 0.2571 1.6771 0.5963 7.5233 4.4859 0.1329 0.2229 7 1.8280 0.5470 9.2004 5,0330 0.1087 0.1987 8 8 1.9926 0.5019 11.0285 5.5348 0.0907 0.1807 9 2.1719 0.4604 13.0210 5.9952 0.0768 0.1668 10 2.3674 0.4224 15. 1929 6.4177 0.0658 0.1558 11 2.5804 0.3875 17.5603 6.8052 0.0569 0.1469 12 2.8127 0.3555 20.1407 7.1607 0.0497 0.1397 13 3.0658 0.3262 22.9534 7.4869 0.0436 0.1336 112 2.8127 0.3563 20.1407 7.1867 0.0484 13 3.0658 0.3262 22.9534 7.4869 0.0436 0.1336 14 3.3417 0.2992 26.0192 7.7862 0.0384 0.1284 15 3.6425 0.2745 29.3609 8.0607 0.0341 0.1241 16 3.9703 0.2519 33.0034 8.3126 0.0303 0.1203 17 4.3276 0.2311 36.9737 8.5436 0.0270 0.1170 18 4.7171 0.2120 41.3013 8.7556 0.0242 0.1142 19 5.1417 0.1945 46.0185 8.9501 0.0217 0.1117 20 5.6044 0.1784 51.1601 9.1285 0.0195 0.1095 21 6.1088 0.1637 56.7645 9.2922 0.0176 0.1076 22 6.6586 0.1502 62.8733 9.4424 0.0159 0.1059 23 7.2579 0.1378 69.5319 9.5802 0.1044 24 7.9111 0.1264 76.7898 9.7066 0.0130 0.1030 25 8.6231 0.1160 84.7009 9.8226 0.0118 0.1018 30 13.2677 0.0754 136.3075 10.2737 0.0073 0.0973 35 20.4140 0.0490 215.7108 10.5668 0.0046 0.0946 40 31.4094 0.0318 337.8824 10.7574 0.0030 0.0930 45 48.3273 0.0207 525.8587 10.8812 0.0019 0.0919 50 74.3575 0.0134 815.0836 10.9617 0.0012 0.0912 6 0.1394 0.0144

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