A city is considering the addition of a turn lane, a computer-controlled signal, and sidewalk at an intersection with an estimated cost of $1.25 million. The annual maintenance costs at the new intersection will be $25000, but users will save $75 000 per year due to reduced waiting time. In addition, accidents are expected to decline, representing a property and medical savings of $155 000 per year. The renovation is expected to handle traffic adequately over a 10-year period. The city uses a MARR of 6 percent.

(a) What is the BCR of this project?

(b) What is the BCRM of the project?

(c) Should the project be done?