a) The PW value for building a four-lane bridge now is $... thousand ...
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a) The PW value for building a four-lane bridge now is $... thousand
b) Calculate the expected PW value for building and widening a two-lane bridge.
E (PWbuilding and widening two-lane) = $...." thousand
C). Building the two-lane bridge or Building the four-lane bridge is recommended
A bridge is to be constructed now as part of a new road. An analysis has shown that traffic density on the new road will justify a two-lane bridge at the present time. Because of uncertainty regarding future use of the road. the time at which an extra two lanes will be required is currently being studied. The estimated probabilities of having to widen the bridge to four lanes at various times in the future are as follows: The present estimated cost of the two-lane bridge is $1,900,000, If construcled now, the four-lane bridge will cost $4,100,000. The future cost of widening a two lane bridge will be an extra $2,200,000 plus $250,000 for every year that widening is delayed. If money can earn 14% per year, what would you recommend? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per vear. The PW value for building a four-lane bridge now is s thousand. (Round to the nearest whole number.)
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