becky6962
becky6962
04.08.2020 • 
Business

Atoll bridge across the Mississippi River is being considered as a replacement for the current I-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?

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