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 : 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:
tableBridge ABridge BInitial cost of bridge,Rs Rs Initial cost of Road works,Rs Rs tableAnnual maintenance ofbridgeRs tableRs for first years& thereaftertableAnnual maintenance ofRoadsRs Rs Life of bridge, years, yearsLife of roads, years, years
With the cost of capital at which proposal should be adopted? Assessment of the proposals to be carried out by a comparison of their present worth
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