Question 9

Due to the budget sequester, the bridge department had their repair budget reduced for the coming
needing repair are shown below. Also shown is the average number of cars per day that travel over e
detour if the bridge becomes unusable. The benefits of repairing a bridge are evaluated as the cost av
days.
If the new budget if $7,500,000, which bridges should be repaid from a benefit and cost perspective?

Bridge
Washington
Adams
Jefferson
Madison
Monroe
Jackson
Solution

Repair Costs
$2,400,000
$2,700,000
$2,300,000
$2,240,000
$1,500,000
$1,600,000

Average Cars
per day
1500
1400
1640
1600
1300
1440

Cost per car per

day to detour
$25
$28
$10
$20
$40
$23

reduced for the coming year. The cost of repair for several bridges
er day that travel over each bridge, and an estimated cost per car to
evaluated as the cost avoidance of a bridge becoming unusable for 90

t and cost perspective?