The bridge is basically valueless compared to everything else about the ship and cargo plus the lawsuits from various contract breaches and other damages. Port shutdowns, environmental cleanup, insurance losses. $100m is a rounding error.
Not sure what you’re trying to say. The new bridge will cost far more than the old one, and the insurance settlement for the loss of the bridge will far exceed the original construction cost.
Explain how the cost of your driveway does not appreciate over time.
The replacement cost goes up with what the current prices are. But a 8k driveway does not become a 200k driveway just because the house it’s going to is a mansion.
That bridge is a shitty old rusty bridge. It may be economically valuable, the waterway may be valuable, it may have large opportunity cost for the city. But it’s still a hunk of old steel.
The cost of the bridge, is the old steel.
The cost of the insurance layout is the old steel PLUS all the other factors.
Your point is as valid as saying a person is worth $27 because that’s the cost of the elements they’re made up of.
Location, replacement cost, possible cash flows: all of these are possible additions to the value of something. Even just the value of the permit to have such a bridge would exceed the value of the metal.
I suppose there’s a difference between the resale (or original) value of the material, and the abstract value of having an, any, bridge in that location.
The bridge is basically valueless compared to everything else about the ship and cargo plus the lawsuits from various contract breaches and other damages. Port shutdowns, environmental cleanup, insurance losses. $100m is a rounding error.
It was worth $110M in 1977. Probably a couple $Billion now.
That’s not how rusty decaying infrastructure works.
Not sure what you’re trying to say. The new bridge will cost far more than the old one, and the insurance settlement for the loss of the bridge will far exceed the original construction cost.
Explain real estate prices then?
Explain how the cost of your driveway does not appreciate over time.
The replacement cost goes up with what the current prices are. But a 8k driveway does not become a 200k driveway just because the house it’s going to is a mansion.
That bridge is a shitty old rusty bridge. It may be economically valuable, the waterway may be valuable, it may have large opportunity cost for the city. But it’s still a hunk of old steel.
The cost of the bridge, is the old steel.
The cost of the insurance layout is the old steel PLUS all the other factors.
You Americans are so stupid.
Your point is as valid as saying a person is worth $27 because that’s the cost of the elements they’re made up of.
Location, replacement cost, possible cash flows: all of these are possible additions to the value of something. Even just the value of the permit to have such a bridge would exceed the value of the metal.
I suppose there’s a difference between the resale (or original) value of the material, and the abstract value of having an, any, bridge in that location.
There’s also the concept of forward replacement value, which is the cost of replacing something like for like.