A small bridge can be constructed with either wood or steel


A small bridge can be constructed with either wood or steel. Steel construction has a longer life than that of concrete. The cost of the wood construction would be $10,500/linear ft and would last 12 years. Using breakeven analysis, what is the maximum that should be spent on steel (per linear ft) given that it would last 30 years? Assume an interest rate of 8%.

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Financial Management: A small bridge can be constructed with either wood or steel
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