Problem 1. It is proposed to build a bridge over an intersection to reduce the traffic jam at that intersection, which can result in time saving valued as $SOK per year. The construction of this bridge costs $30K; and it requires maintenance with the cost of $20K every 5 years. On the other hand, shop owners on the intersection may lose income of $10K per year. If the bridge is expected to last for a very long time and the minimum attractive rate of return is 15% per year, use the modified B/C ratio method (with annual worth) to recommend the acceptance or rejection of this project B-D Conventional B Modified a = Problem 2. Compare the following mutually exclusive alternatives using the conventional incremental B/C ratio with annual worth to determine the most economical alternative with an interest rate of 15% per year. The Do Nothing option does not exist. B B-D-M&O Initial Invetment PW of NCF PI = PW of initial investment X Initial Cost ($) 50K Maintenance cost ($/yr) 20K Income ($/yr) 120K Life (years) 10 Y 75K 25K 170K 15 z 25K 30K 150K 20 no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 - 15% PIED AVP 0.8696 1.1500 0.7561 0.6151 0.6575 0.4380 0.5718 0.3503 0.4972 0.2983 0.4323 0.2642 0.3759 0.2404 0.3269 0.2229 0.2843 0.2096 0.2472 0.1993 0.2149 0.1911 0.1869 0.1845 0.1625 0.1791 0.1413 0.1747 0.1229 0.1710 0.1069 0.1679 0.0929 0.1654 0.0808 0.1632 0.0703 0.1613 0.0611 0.1598 ALE 1.0000 0.4651 0.2880 0.2003 0.1483 0.1142 0.0904 0.0729 0.0596 0.0493 0.0411 0.0345 0.0291 0.0247 0.0210 0.0179 0.0154 0.0132 0.0113 0.0098 PIG 0.000 0.756 2.071 3.786 5.775 7.937 10.192 12.481 14.755 16.979 19.129 21.185 23.135 24.972 26.693 28.296 29.783 31.156 32.421 33.582 20