this post was submitted on 26 Mar 2024
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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.