There are 2 different pla

There are 2 different pla

There are 2 different plans to build a bridge. Both have a interest rate of 8% and a 50 year life. Which design has the better present worth?Plan1:initial construction: $585Land acquisition: 120Annual operation and maintence: 2Annual increase of operation and maintenance: 4%Major maintenance in the 25th year: 185Salvage cost: 30Plan 2:initial construction: $470Land acquisition: 95Annual operation and maintence: 3Annual increase of operation and maintenance: 0.3%Major maintenance in the 25th year: 210Salvage cost: 27

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