Annual Costs-Airport Capacity Project. A proposed option for the Mythaca airport capacity improvement will cost $15 Million and have a lifetime of 12 years with no salvage value. The increase in O&M costs will be negligible. Air traffic is growing at the rate of 3% per year. The benefits ($3.5 Million) at the time the runway improvement comes on line are significant, but they will decline proportional to the traffic increase. The discount rate is 6.5% What is the Equivalent Uniform Annual Cost of Construction? What is the dollar value of the benefit in year 12? What is the discounted value of the benefit in year 12? Determine the Benefit to Cost Ratio over the twelve-year life of the project