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

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

Problems 25 through 29 are based on the following information: The Transportation Authority is planning to build a new bridge. Since only part of the capacity will be required for the next 20 years, an alternative to building the full capacity now is to build the bridge on two stages. MARR is 8%. Estimated costs are as follows: Construction Rehabilitation Cost Annual Costs Every 10 years Maintenance Cost Build in two stages: Stage 1 (Building half-capacity now) $12M $1 M $50 K Stage 2 (Expand to full-capacity $14M Additional $1.2 M Additional $75 K after 20 years) on top of that for on top of that for Stage 1 Stage 1 Build full capacity now $24 M $2 M $100 K 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 d. $125 K 13.8 26. Whon building this bridge in two stages, the expected olos $ 2.2M expected shabitation e r 10 years S2M c. $1.2M Syz0.2M 27. The capitalized cost for building the new bridge in two a $ 15,8 M e new bridge in two stages is close to b. $16.9 M c. $ 17.6 M d. $26.9 M 28. The capitalized cost for building the new bro to cost for building the new bridge in full capacity now is close a. S 16.9 M b. S 24.3 M c. $26.9 M d. $ 49.1 M zed cost analysis, the preferred construction plan of this bridye should be a. Build in two stages b. Build full capacity now c. Either one d. Neither one

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