In order to improve evacuation routes out of NewOrleans in

Chapter , Problem 5-39

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QUESTION:

In order to improve evacuation routes out of NewOrleans in the event of another major disaster suchas Hurricane Katrina, the Louisiana Department of Transportation (L-DoT) is planning to constructan additional bridge across the Mississippi River.L-DoT is considering two alternatives: a suspensionbridge and a cantilever bridge. The department usesan interest rate of 8% and plans a 50- year life foreither bridge. Which design has the most favorablenet present worth?

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QUESTION:

In order to improve evacuation routes out of NewOrleans in the event of another major disaster suchas Hurricane Katrina, the Louisiana Department of Transportation (L-DoT) is planning to constructan additional bridge across the Mississippi River.L-DoT is considering two alternatives: a suspensionbridge and a cantilever bridge. The department usesan interest rate of 8% and plans a 50- year life foreither bridge. Which design has the most favorablenet present worth?

ANSWER:

Problem 5-39

In order to improve evacuation routes out of New Orleans in the event of another major disaster such as Hurricane Katrina, the Louisiana Department of Transportation (L-DoT) is planning to construct an additional bridge across the Mississippi River. L-DoT is considering two alternatives: a suspension bridge and a cantilever bridge. The department uses an interest rate of 8% and plans a 50-year life for either bridge. Which design has the most favorable net present worth?

                                                               Step by Step Solution

Step 1 of 3

The initial construction cost of plan A is .

The Initial land acquisition cost of plan A is .

The initial construction cost of plan B is .

The Initial land acquisition cost of plan B is .

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