A city is considering to build a bridge to reduce the traffic congestions at a certain intersection, which will save time with the value of 100,000 QR per year. The initial cost of to build the bridge is 3,000,000 QR; and it requires maintenance with the cost of 15,000 QR every 3 years. However, the shop owners next to that intersection are expected to lose an income of around 7,000 QR per year. Assuming that the bridge is expected to last for a long time and an interest rate of 10% per year, use the modified B/C method with annual worth values to judge if this project shall be built or not.

Answer rating: 100% (QA)

The annual worth of the bridge is 3000000 150003 1 011 100000 1 012 2621315... View the full answer