What is the required benefit per vehicle to justify bridge

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Reference no: EM132168176

Question: A proposed steel bridge has a life of 50 years. The initial cost is $350,000, and the annual maintenance costs $12,000. The bridge deck will be resurfaced every 10 years (in years 10, 20, 30, and 40) for $90,000, and anticorrosion paint will be applied every 5 years (in years 5, 10, 15,..., 45) for $22,000. The state highway department uses an interest rate of 6%, and 800 vehicles per day will go over the bridge. What is the required benefit per vehicle to justify the bridge?

Reference no: EM132168176

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