Question

A toll bridge across the Mississippi River is being considered as a replacement for the current 1-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become apart of the us interstate highway system, the B-C ratio method must be applied in the elevation. Investment costs of the structure are estimated to be 17,100,000, and 311,000 per occurance(no resurfacing cost in year 25). Revenues generated from the toll are anticipated to be 2,300,000 in its first year of operation, with a projected annual rate increase of 2% per year due to the anticipated annual increase in traffic across the bridge. Assuming that the initial surfacing of the bridge is included in the initial investment cost of the structure. the benefit cost ratio of the project with pw is?

Answer 1

PW (B) = B[d-Celf, 10-1425) (FIP, 21, 28)] o.10 ~ 002 - $2,200,000 [.- Catones) (sto-2725] 0.08 $2,300,000 [ - (0.092295996) (1.6.4060 saan) ] 0.08 - $ 24,396,636 Pw(c)= I tkw (ohm/tpw (R) = 12,600,000 + 311,000 (PIA, 109,2) $ CA / F, 104,5) - 17,100,000 & 311,000 (8.514) (6.1638) - $ 17,537, 712 BC ratio - PW (R) soule) = (1.39)