Question: Question 6 : A town built on a river is considering building an additional bridge across the river. Two proposals have been put forward for

Question 6: A town built on a river is considering building an additional bridge across the river. Two proposals have been put forward for bridges at different sites. The costs of each proposal are summarised as follows:
\table[[,Bridge A,Bridge B],[Initial cost of bridge,Rs 6,500,000,Rs 5,000,000],[Initial cost of Road works,Rs 3,500,000,Rs 3,000,000],[\table[[Annual maintenance of],[bridge]],Rs 50,000,\table[[Rs 90,000 for first 15 years],[&1,10,000 thereafter]]],[\table[[Annual maintenance of],[Roads]],Rs 30,000,Rs 25,000],[Life of bridge,60 years,30 years],[Life of roads,60 years,30 years]]
With the cost of capital at 9%, which proposal should be adopted? (Assessment of the proposals to be carried out by a comparison of their present worth)
Question 6 : A town built on a river is

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Civil Engineering Questions!