Determining the Capitalized Worth of a Bridge A new bridge across the Cumberland River is being planned near a busy high- way intersection in the commercial part of a mid-western town. The construction (first) cost of the bridge is $1,900,000 and annual upkeep is estimated to be $25,000. In addition to annual upkeep, major maintenance work is anticipated every eight years at a cost of $350,000 per occurrence. The town government's MARR is 8% per year. (a) For this problem, what analysis period (N) is, practically speaking, defined as forever? (b) If the bridge has an expected life of 50 years, what is the capitalized worth (CW) of the bridge over a 100-year study period?
