A Bridge Costs $450 000 to Build and $12 000

question 20

Essay

A bridge costs $450 000 to build and $12 000 per year to maintain. The bridge is repaved every 10 years for $300 000. Assume that the bridge will last for 60 years and that the annual interest rate is 8%. How many crossings are needed daily to justify the bridge if each user's willingness to pay for the crossing is $2?

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Definitions:

Behavioral Incentives

Rewards or punishments designed to influence and modify the behavior of individuals or groups.

Cross-Unit Incentives

Incentive programs designed to encourage collaboration and shared success between different departments or divisions within an organization.

Financial Incentives

Monetary rewards or benefits offered to influence the behavior or actions of individuals or organizations, such as bonuses, subsidies, or tax credits.

Contract Employees

Outside workers who are hired by a firm to perform specific predetermined tasks for a company and who are paid by the job.