Question: Problems 25 through 29 are based on the following information The T Iransportation Authority is planning to build a new bridge. Since only part of


Problems 25 through 29 are based on the following information The T Iransportation Authority is planning to build a new bridge. Since only part of the capacity will be d orthene gthe full eap ity now is to build the bridge on is 8%, Estimated costs are as follo Construction Rehabilitation Cost Annual Costs Every 10 years Maintenance Cost Build in two stages: Stage I (Building half-capacity now) Stage 2 (Expand to full-capacity after 20 years) $12 M S1 M S50 K Additional S1.2M Additional $75 K on top of that for on top of that for $14 M Stage 1 S2 M Stage 1 $100 K Build full capacity now $24 M 25. When building this bridge in two stages, the expected annual maintenance cost in year 21 and thereafter is closest to a. $25 K b. $50 K c. $75 K $125 K 13.8
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