1) The following data are for two mutually exclusive projects:

	Project A	Project B
PW(benefits)	$19,500,000	$15,000,000
PW(operating and maintenance costs)	$5,000,000	$8,000,000
PW(capital costs)	$5,000,000	$1,000,000

(a) What is the benefit-cost ratio for Project A (to two decimal points):____________ [1/8]

(b) What is the benefit-cost ratio for Project B (to two decimal points):____________ [1/8]

(c) What is the modified benefit-cost ratio for Project A (to two decimal points)?____________ [1/8]

(d) What is the modified benefit-cost ratio for Project B (to two decimal points)?____________ [1/8]

(e) What is the benefit-cost ratio for the increment between projects (to two decimal points)?____________ [1/8]

(f) What is the Present Worth of Project A?____________ [1/8]

(g) What is the Present Worth of Project B?____________ [1/8]

(h) Which is the preferred project (enter either 'A' or 'B')?__________[1/8]

2) Several new box stores have created additional congestion at an intersection in north St. John's, Newfoundland. City engineers have recommended the addition of a turn lane, a computer controlled, signal and sidewalks, at an estimated cost of $1,500,000 dollars. The annual maintenance costs at the new intersection will be $8,000, but users will save $60,000 per year due to reduced waiting times. In addition, accidents are expected to decline, representing a property and medical savings/benefits of $150,000 dollars per year. The renovation is expected to handle traffic adequately for a 10 year period. The city uses a MARR of 5 percent.

1. Determine the BCR for this project ____________ [5/10]
2. Determine the BCRM of the project ____________ [5/10)