Exercise 1: Menu of Projects and Synergy (10 points) Suppose the US Forest Service is considering two mutually exclusive projects in northern Min nesota. Project A is a forest reserve which will have estimated benefits of $10 million and will cost $8 million; Project B is a children's recreational area, which has estimated benefits of $13 million and costs $10 million. In addition, a road (Project C) could be built for a cost of $3 million that would increase the benefits of project A by $5 million and increase the benefit of project B by $7 million. Even in the absence of any other projects, the road has estimated benefits of $2 million (a) (4 pts) Specify the menu of all possible alternatives in this scenario. Calculate the net benefits for each item in the menu (b) (3 pts) If only one of the alternatives listed in the menu of actions you listed above can be selected, which should be selected and why? (c) (3 pts) If the budget constraint of the forest services is $12 millions dollars, then which alter native should it choose and why