Increased life of the steel bridge justifies its increased

Reference no: EM13684381

Two bridge designs have been proposed for the new interstate highway to cross Rio de Lubbock. A bridge constructed from wood will cost $6,000 and will last for eight years. A bridge constructed from steel will cost $11,000 and will last for twenty years. Either bridge will have a zero salvage value at the end of its life. Use an interest rate of 8 percent and decide whether the increased life of the steel bridge justifies its increased cost.

Reference no: EM13684381

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