Argentinais consideringconstructinga bridgeacross the Rio de la Plata to connect its northern coast.


Argentinais consideringconstructinga bridgeacross the Rio de la Plata to add its northern strand to the southern strand of Uruguay. If this bridge is fabricated, it succeed subject the expedition era from Buenos Aires, Argentina, to Sao Paulo, Brazil, by balance 10 hours and has the virtual to significantly improvethe flowof manufacturedgoodsbetweenth two countries. The cost of the new bridge, which succeed be the longest bridge in the earth, spanning balance 50 miles, succeed be $700 darling. The bridge succeed claim an annual maintenance of $10 darling for repairs and upgrades and is estimated to conclusive 80 years. It is estimated that 550,000 conveyances succeed use the bridge during the first year of exercise, and an joined 50,000 conveyances per year until the tenth year. These postulates are domiciled on an a duty enjoin of $90 per conveyance. The annual commerce for the balance of the spirit of the bridge spirit succeed be 1,000,000 conveyances per year. The Argentine council claims a insufficiency rate of retaliate of 9% to receipts after a while the plan.

(a) Does this plan arrange tit revenues to offsetits costs? .

 (b) What considerations are there besides economic factors in deciding whether to frame the bridge?