An existing highway is 10 miles long and the average traffic speed is 40 miles an hour. The average daily traffic load for the next year is estimated to be 800 cars, of which 15% are commercial and the remainder private. The present net realizable value of the highway is zero and the remaining economic life is estimated to be 10 years. The present highway can be replaced by a wider, straighter road. Also, by rerouting sections of the highway, the distance will be shortened to 8.5 miles between the existing terminals. The average car speed on the improved highway is expected to be 50 miles an hour. The cost of the replacement is $2,400,000 with a 30-year economic life and zero salvage value. At the present rate of traffic, there are 8 accidents per year on the existing road at an average cost of $750. It is estimated that one fatal accident will occur every 5 years at a cost of $50,000. It is estimated that for every traffic increase of 100 cars, there will be one more non-fatal accident and the equivalent of 1/5 of a fatal accident. The new road will reduce accidents by 30%. The daily traffic rate is expected to increase 100 cars per year. For example, 2 years hence, it will be 900 cars a day. Maintenance on the old road is $50,000 a year; on the new road, it will be $30,000 a year. The cost of time saved is at the rate of $4.50 per hour for commercial and $2.00 for private vehicles. The cost of mileage is 20 cents per mile for commercial vehicles and 5 cents per mile for private automobiles. The cost of capital is 5%. Determine what course of action should be taken. Use annual equivalent values in your calculations