Three public works projects, each having a first cost of \(\$ 770,000\) and annual operating costs of \(\$ 80,000\), are proposed. The lives of Projects 1,2, and 3 are 10,15, and 20 years, respectively, after which the project will be over, providing no benefits and requiring no operating costs. None of the projects can be renewed-each is a one-shot project. The annual benefits over the lives of Projects 1 , 2, and 3 will be \(\$ 208,000, \$ 195,000\), and \(\$ 190,000\), respectively.

a. Select only one project to be implemented. Use a present worth basis and a \(B-C\) measure of worth. Public works projects are evaluated at 7 percent, and a 20-year planning horizon is to be used in this case.

b. Determine the value of the annual benefit that will make the least desirable project equally attractive to the most desirable project.