A small section of a highway can be dealt with in three different ways: (1) it can be left as it is (do nothing), (2) an embankment/bridge combination can be used; or (3) a cutting tunnel combination can be provided. Using whatever method is suitable, determine the alternative that has the best financial advantage. The interest rate for the investment is 5% per year. Alternative Life Initial cost Maintenance As is (do-nothing) Perpetual $35,000/yr Embankment/bridge Case (a) perpetual $170,000 $1,000/yr Case (b) 50 years $200,000 $2,000/yr Cutting tunnel Case (a) perpetual $75,000 $700/yr Case (b) 50 years $300,000 $2,000/yr