In order to improve evacuation routes out of New Orleans in the event of another major...

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. The department uses an interest rate of 8% and plans a 50-year life for either bridge. Which design has the better present worth?

All costs in $M	Bridge M	Bridge L
Land acquisition	$220	$195
Annual O & M	2	3
Annual increase	0.04	0.03
Major Maintenance (Year 25)	185	210
Salvage Cost	30	27
Initial Construction	$585	$470

Expert Solution

Therefore, the Bridge L is better. Because the NPV is less negative than the Bridge M.

Please don't forget to rate the answer if its helpful, thank you.

Rahul Sunny answered 1 year ago

Todd's Direct, a major TV sales chain headquartered in New Orleans, is about to open its...

Todd's Direct, a major TV sales chain headquartered in New Orleans, is about to open its first outlet in Mobile, Alabama, and wants to select a site that will place the new outlet in the center of Mobile's population base. Todd examines the seven census tracts in Mobile, plots the coordinates of the center of each from a map, and looks up the population base in each to use as a weighting. The information gathered appears in the following table....

New Orleans Shipping. If the share price of Emaline, a New Orleans-based shipping firm, rises from...

New Orleans Shipping. If the share price of Emaline, a New Orleans-based shipping firm, rises from $12.13 to $15.96 over a one-year period, calculate the rate of return to the shareholder given each of the following: a. The company paid no dividends. b. The company paid a dividend of $1.01 per share. c. The company paid the dividend and the total return to the shareholder is separated into the dividend yield and the capital gain.

Todd’s Direct, a major TV sales chain headquar-tered in New Orleans, is about to open its...

Todd’s Direct, a major TV sales chain headquar-tered in New Orleans, is about to open its first outlet in Mobile, Alabama, and wants to select a site that will place the new out-let in the center of Mobile’s population base. Todd examines the seven census tracts in Mobile, plots the coordinates of the center of each from a map, and looks up the population base in each to use as a weighting. The information gathered appears in the following table....

In probability theory, a conditional probability measures the probability of an event given another event has...

In probability theory, a conditional probability measures the probability of an event given another event has occurred. The conditional probability of A given B, denoted by P(A|B), is defined by P(A|B) = P(A ∩ B) P(B) , provided P(B) > 0. Show that the conditional probability defined above is a probability set function. That is show that a) P(A|B) ≥ 0 [4 Marks] b) P(S|B) = 1. [4 Marks] c) P( S Ai |B) = PP(Ai |B) [4 Marks]

What type of event is a customer order A. Investigation Event B. Mutual Commitment Event C....

What type of event is a customer order A. Investigation Event B. Mutual Commitment Event C. Economic Decrement Event D. Economic Increment Event E. Economic Reversal Event

A machine is out of order for major work. Define controls exercised in Maintenance Department required...

A machine is out of order for major work. Define controls exercised in Maintenance Department required for its Maintenance.

A researcher wants to find out which of four routes is the fastest way to drive...

A researcher wants to find out which of four routes is the fastest way to drive from a suburb to downtown Chicago. He divides 20 participants into four groups, and he times each of them as they go on their assigned route. The following are the number of minutes for each route: Route 1 Route 2 Route 3 Route 4 __________________________________ 22 25 26 26 26 27 29 28 25 28 33 27 25 26 30 30 31 29 33...

A survey of a sample of 26 hotels in New Orleans found that the average hotel...

A survey of a sample of 26 hotels in New Orleans found that the average hotel room rate s $88.42 with a standard deviation of $5.62 and another survey of 25 hotels in the Phoenix area found that the average room rate is $80.61. Assume with a standard deviation of $4.83. At α = 0.05, can it be concluded that there is a significant difference in the rates? Source: USA TODAY. Make sure to state Ho, H1 and where the claim...

In this discussion, you are the IT manager for a four-year university in New Orleans, Louisiana....

In this discussion, you are the IT manager for a four-year university in New Orleans, Louisiana. The IT department supports the computer network requirements for over 6,000 students, 300 faculty members, and 200 staff members – plus a conference network for distinguished guests. See Exploration 2 for tips on how to complete this discussion. Instructions In your initial response, address the following points: Describe the major areas that you need to include in your Emergency Action Plan and why they...

In order to improve its business processes, Martin Corp. Ltd. purchased a new machine on July...

In order to improve its business processes, Martin Corp. Ltd. purchased a new machine on July 1, 2017. The cost price of the machine was $1,250,000. Martin Corp. estimated that the machine will have a useful life of 5 years at the end of which its salvage value will be $32,000. The machine is estimated to produce 496,000 units and work 62,000 hours. . During 2017, Martin Corp. used the machine for 6,000 hours and produced 52,000 units. Martin Corp....

Question