Bayview's growth is constrained by mountains on one side and the bay on the other. A...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bayview's growth is constrained by mountains on one side and the bay on the other. A bridge across the bay is planned, but which plan is best? It can be built with a single deck to meet the needs of the next 20 years, or it can be built with two decks to meet the needs of the next 50 years. The piers can also be built to support two decks, but with only one deck being built now. Building it all now will cost $160M, and leaving the top deck for later will save $40M. Building that top deck later will cost S7OM, including the cost of traffic disruption. A single-deck bridge will cost S100M now and $115M in 20 years. Deck maintenance is $1.4M per year per deck. Pier maintenance is $1.2M per year per bridge. If the interest rate is 6%, which design should be built? If the two-deck bridge is built immediately, dedicated lanes for buses, carpools, and bicycles can be added. To evaluate this use economically, estimate the cost of the underused capacity for the bridge. Bayview's growth is constrained by mountains on one side and the bay on the other. A bridge across the bay is planned, but which plan is best? It can be built with a single deck to meet the needs of the next 20 years, or it can be built with two decks to meet the needs of the next 50 years. The piers can also be built to support two decks, but with only one deck being built now. Building it all now will cost $160M, and leaving the top deck for later will save $40M. Building that top deck later will cost S7OM, including the cost of traffic disruption. A single-deck bridge will cost S100M now and $115M in 20 years. Deck maintenance is $1.4M per year per deck. Pier maintenance is $1.2M per year per bridge. If the interest rate is 6%, which design should be built? If the two-deck bridge is built immediately, dedicated lanes for buses, carpools, and bicycles can be added. To evaluate this use economically, estimate the cost of the underused capacity for the bridge.
Expert Answer:
Answer rating: 100% (QA)
Built Single Deck Interest rate 5 Years 20 years Cost of single deck 100 115PVIF520 years 1... View the full answer
Related Book For
Value at Risk The New Benchmark for Managing Financial Risk
ISBN: 978-0071464956
3rd edition
Authors: Philippe Jorion
Posted Date:
Students also viewed these accounting questions
-
The Linux 2.6 kernel can be built with no virtual memory system. Explain how this feature may appeal to designers of real-time systems.
-
Huber Corporation makes custom-order furniture to meet the needs of disabled persons. On January 1, 2014, the company had the following account balances: $75,600 for both cash and common stock. In...
-
Trade associations want to meet the needs of their members, including those that are social in nature. Identify some activities that you believe would be fun to do with others working in the same...
-
Russ Wyant owned Humble Ranch in Perkins County, South Dakota. Edward Humble, whose parents had previously owned the ranch, was Wyants uncle. Humble held a two-year option to buy the ranch. The...
-
An exit poll is taken of 3000 voters in a statewide election. Let X denotes the number who voted in favor of a special proposition designed to lower property taxes and raises the sales tax. Suppose...
-
Go to http://finance.yahoo.com/, enter the symbol MS (Morgan Stanley), and retrieve stock price data at the beginning of the last 20 quarters. Then go to http://research.stlouisfed.org/fred2/ and...
-
An alternative way of estimating risk for real estate is to use prices on traded REITs to compute returns, and to regress these returns against a stock index to arrive at a beta estimate. Would this...
-
Account analysis method. Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2009. Gower,...
-
How do you compute the EAY of a semi-annual coupon bond? A. You assume that the bond is twice as long as its actual maturity to compute the discount rate r, then the EAY is 2*r B. You assume that the...
-
Chandra was the sole shareholder of Pet Emporium, which was originally formed as an S corporation. When Pet Emporium terminated its S election on August 31, 2019, Chandra had a stock basis and an...
-
Fundamentally, the fraud of lapping is a failure of the system of internal controls. As specifically as you can, discuss the control system failure. In your answer, you should first briefly describe...
-
Your story should follow all of the rules you've learned so far about organizing a news story in inverted pyramid style. You should stack your news from most important general information to the...
-
Differential Analysis for Machine Replacement Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of...
-
How does the use of computational methods and density functional theory (DFT) in catalysis research enhance our ability to predict catalytic behavior, and what are the limitations of these...
-
A major bank has a head office in an industrial park outside Regina, Saskatchewan. The head office has four departments: telephone banking, IT support, human resources, and transaction processing. At...
-
Read Section 5.01 and Section 220.1 of the Model Penal Code and answer the following question. Joe is terminated from his position as an attorney on a Friday afternoon. The termination was a surprise...
-
I am very stuck on how to work on this problem. There are no instructions that have helped me understand how to do this. I desperately need help creating this and an explanation on how to do it....
-
Find the work done in pumping all the oil (density S = 50 pounds per cubic foot) over the edge of a cylindrical tank that stands on one of its bases. Assume that the radius of the base is 4 feet, the...
-
Requests are not usually uniformly distributed. For example, a cylinder containing the file system FAT or inodes can be expected to be accessed more frequently than a cylinder that only contains...
-
Fragmentation on a storage device could be eliminated by recompaction of the information. Typical disk devices do not have relocation or base registers (such as are used when memory is to be...
-
What are the extra costs incurred by the creation and scheduling of a process, as compared to the cost of a cloned thread?
-
When $25 of merchandise is returned for a credit on account, what is the amount of the credit to Accounts Receivable, assuming a 6% sales tax rate? (a) $1.50 (c) $26.50 (b) $25.00 (d) $31.00
-
When $300, plus sales tax of 6%, is received for an amount previously owed, Cash is debited for what amount? (a) $18 (c) $300 (b) $318 (d) $282
-
Cash receipts should a) be posted to customer accounts daily. b) be posted to customer accounts weekly. c) be posted to customer accounts at the end of the month. d) not be posted.
Study smarter with the SolutionInn App