Assessing the value of the negative
effects of closing the trestle bridge: Method 1-Óthe worthÓ of having the
bridge.
Assume steel alloy is only way of having
uninterrupted service.
P =
$191,524 is thus minimum PV of having 50 years of uninterrupted
service.
P
= R(USPW)Pab = $191,524 = R (USPW i=0.06, n=50)
= $191,524 =R(15.762)
$191,524/15.762 =$12,150 = annual value of having a bridge, so
monthly
value of having bridge = $12,150/12 =
$1013
P
= $1013 (SPPW i=0.06, n=25) = $1013 (0.233) = $236Hence, the
negative effect of being without a bridge for one bridge for 1 month 25 years from
now would have present value of at least $236