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Please see attached. Imagine the city of San Francisco is considering a plan to build a new bridge connecting San Francisco to Sausalito. The city

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Imagine the city of San Francisco is considering a plan to build a new bridge connecting San Francisco to Sausalito. The city plans to charge a toll for vehicles crossing the bridge. San Francisco hires you to estimate the present values of the costs and benefits of the bridge over 10 years (the life of the project). Magically (or rather, after very hard work), you come up with the following table. Present Value in millions of dollars Construction and Maintenance Costs 12 Toll Revenue from city residents 8 Toll Revenue from nonresidents 5 Benefits in time saved to city residents 11 Benefits in time saved to nonresidents 4 a. Assuming you take a global perspective, what are the net benefits of building this bridge using the information in the table? [3 points] b. Assuming you take a local city perspective, what are the net benefits of building this bridge? [3 points] c. List one potential cost or benefit item that was not listed in the table above but should have been taken into account [2 points] d. If you were tasked with the sensitivity analysis for this CBA, which cost or benefit would you choose for sensitivity analysis (just give me 1 example)? Why? [2 points]

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