In order to make worthwhile the construction of a bridge with a life of 200 years and an estimated rate of return equal to 10 percent per year the market rate of interest must be:

Question

Quizplus · Accepted Answer

For the construction of a bridge to be worthwhile, the estimated rate of return on the investment (10 percent per year) must be equal to or greater than the market rate of interest. If the market rate of interest is higher than the estimated rate of return, the investment would not be as attractive because alternative investments could potentially yield higher returns. Therefore, for the investment in the bridge to be considered worthwhile, the market rate of interest must be 10 percent or less.

In Order to Make Worthwhile the Construction of a Bridge