Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.
Sagot :
Answer:
Argentine Bridge Across the Rio de la Plata
a. The project provides sufficient revenues to offset its costs.
b. Non-economic factors deciding the bridge construction include:
Social connections and enhancement of relationships
Reduction of travel time
Infrastructural development
Explanation:
a) Data and Calculations:
Reasons for constructing the bridge:
Connect northern Argentine coast to the southern coast of Uruguay
Reduce travel time from Buenos Aires to Sao Paulo by 10 hours
Improve the flow of manufactured goods between the two countries
Longest bridge in the world, spanning over 50 miles
Cost of the new bridge = $700 million
Annual maintenance cost = 800 million ($10m * 80 years)
Total cost of new bridge $1,500 million
Minimum required rate of return = 9% of $1,500 million ($135 million)
Estimated Revenue from the new bridge:
Vehicles using the bridge:
1st Year to 10th year = 550,000 each
Basic number of vehicles using the bridge = 5,500,000
Additional vehicles per year until tenth year = 50,000
Total additional vehicles = 450,000 (50,000 * 9)
Total number of vehicles using the bridge for the first 10 years = 5,950,000 (5,500,000 + 450,000)
Annual vehicular traffic from 11th year to 80th year = 1 million per year
Total from 11th to 80th year = 70 million ( 1 million * 70)
Overall vehicular traffic throughout the bridge's life = 75,950,000 (70,000,000 + 5,950,000)
Toll charge per vehicle = $90
Total revenue = $6,835,500,000 (75,950,000 * $90)
We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.