Problem
A proposed bridge would cost $4 million to build and $180,000 per year in maintenance. The bridge should last 40 years. Benefits to the driving public are estimated to be $900,000 per year. Damages (not paid) to adjacent property owners due to noise is estimated to be $250,000 per year. Because of the uncertainty on what interest rate should be used to evaluate this project, calculate the breakeven annual interest rate that results in a B/C ratio of 1.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.