Potentially useful formulas: Ep = 09 F _pdq q* dp q* dp , Demand: q = a - mp; Supply: q = b + np. Area of a triangle = = x base x height, SS = CS + PS + GS; Expected income = Prob(Scenario 1) (Income in Scenario 1) + Prob(Scenario 2) (Income in Scenario2) ; EU(Investments - OP) = EU(No Investments). 1. OSU is considering three alternative construction projects, with the following estimated benefits and costs (in present value): i. An expansion of the campus in Bend. Benefits: $15 million, Costs: $ 12 million ii. A llama research center. Benefits: $4 million, Costs: $ 5 million iii. A soccer stadium. Benefits: $6 million, Costs: $3.5 million a. Calculate net benefits and the benefit-cost ratio for each project. (3 points) Benefits Costs Net Benefits B - C Ratio (B/C) (B-C) Bend Campus $ 15 M $12 M Llama Center $ 4 M $ 5 M Soccer Stadium $ 6 M $ 3.5 M b. Which project, if any, should be chosen? Why? (2 points)