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In order to improve evacuation routes out of New Orleans in the event of another major disaster such as Hurricane Katrina, the Louisiana Department of Transportation (L-DoT) is planning to construct an additional bridge across the Mississippi River. L-DoT is considering two alternatives: a suspension bridge and a cantilever bridge. The department uses an interest rate of 8% and plans a 50-year life for either bridge. Which design has the most favorable net present worth? Contributed by Paul R. McCright, University of South Florida.

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Business Economics, Economics

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