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A large company must build a bridge to have access to land for expansion of its manufacturing plant. The bridge could be fabricated of normal steel for an initial cost of $30,000 and should last 15 years. Maintenance (cleaning and painting) will cost $1,000 /year. If a more corrosion resistant steel was used, the annual maintenance cost would be only $100/year, although its life would be the same. In 15 years there will be no salvage value for either bridge. The company pays an income tax rate of 35% and uses MACRS depreciation. If the after-tax MARR is 12%, what is the maximum amount that should be spent on the corrosion resistant bridge? A large company must build a bridge to have access to land for expansion of its manufacturing plant. The bridge could be fabricated of normal steel for an initial cost of $30,000 and should last 15 years. Maintenance (cleaning and painting) will cost $1,000 /year. If a more corrosion resistant steel was used, the annual maintenance cost would be only $100/year, although its life would be the same. In 15 years there will be no salvage value for either bridge. The company pays an income tax rate of 35% and uses MACRS depreciation. If the after-tax MARR is 12%, what is the maximum amount that should be spent on the corrosion resistant bridge

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