8.28 A new highway has been proposed to join two cities, at a total construction cost of $700000000 The new highway has a 20-year life. It would render obsolete the current railroad system connecting the two cities, which would be dismantled at a cost of $100 000 000. This would put the 4000 railroad employees out of work; they would each be paid S6000 per year in damages, for a total of 20 years. The railroad would require a $1 000000 annual maintenance program if it is kept. The railroad property has an assessed valuation of S30000000; the property would be purchased at that figure and used as the new roadbed. The highway is estimated to yield, in taxes on the trucks using it, S0.005 per ton-mile more than the railroad; a total of 500 million annual ton-miles of use is expected. It is also estimated that the general tax revenues would increase by S10 000 each year because of the new highway. On theother hand, it is estimated that the new highway would cost $2 000 000 per year to maintain. What is the BCR for the new highway, relative to the current railroad, assuming the project would be financed by 7% per year interest- bearing bonds, with the interest compounded annually? What is the NBV