Tropical Storm Gabrielle caused minimal damage to the Outer Banks, but it did renew the debate about the safety of the Herbert C. Bonner Bridge.
The 2.5-mile bridge straddles the Oregon Inlet in Dare County. It is the only road to Hatteras Island.
At the height of the summer season, an estimated 15,000 vehicles travel over the bridge daily. Some of the travelers are tourists going to the Cape Hatteras National Seashore. The attraction has an estimated 2 million visitors a year....
In a recent inspection, the Bonner Bridge earned 2 out of a possible 100 points, with 100 being a perfect score. To improve the structure, the state approved $50 million for repairs.
Suppose the daily usage of Bonner Bridge is 15,000 vehicles for 6 months each year (180 days). Using a time horizon of 10 years, what is the per use benefit that would justify $50 million for repairs? Use a spreadsheet to obtain your answer. The costs occur in year 1 (don't worry about discounting).
Can you think of a way to efficiently raise the revenue necessary for repairs?