For a new pavement project, two design alternatives are considered. For Alternative 1, the initial design will cost $1 million and have an associated work zone cost of $220,000 at year 0. Three additional rehabilitations, at a cost of $250,000 each, will be incurred in years 10, 20 and 30. Associated work zone user costs in years 10, 20 and 30 will be $220,000, $330,000 and $440,000, respectively. For Alternative 2, the initial design will cost $1.2 million and will have an associated work zone cost at year 0 of $240,000. Two additional rehabilitations at a cost of $350,000 will be incurred in years 15 and 30. Associated work zone user costs in years 15 and 30 will be $250,000 and $350,000, respectively. Over a 35 year analysis period: 1. Calculate the salvage value of the two alternatives assuming linear depreciation over 10 years. 2. Compute the NPV for each alternative at a discount rate of 4%. Based on economic analysis only, which strategy would you select? 3. Would your selection change if the discount rate is 3%? What about for 5%? Why?