1.) Currently the road A60 in Iceland is used by 200,000 cars for an average of 1 hours every day and each car transports an average of 2 passengers. However, 40 people die every year from car crash in the A60. A study shows that if the speed limit was lowered from 160kmh to 110kmh, the number of deaths would half. Therefore, government is thinking of changing the speed limits. Assume a human life in Iceland is valued at 1,000,000 Euro by the government. The cost of replacing all the speed signs in A60 is 1.4M Euro. The cost of the campaign to inform the citizens about the change is 3.6M Euro. Life expectancy in Iceland is 100 years The inflation rate in Iceland is +0.50. Answer if it is ethic for the Icelandic government to change the speed limits. Assume all other missing information. Explain each item in detail. SCENARIO A | SCENARIO B (BASE) No new speed New lower speed limit (do nothi CHANGE) limit Costs Benefits Profit (Benefit -Cost)