Q1 (30 points): A municipality is considering two locations for a new national park, which will be operated for 30 years. The annual number of visitors is predicted to be 100 000 people, of which 70% are adults and 30% are children. The benefit-cost values of each location estimated by the engineers of the municipality are tabulated below. By carrying out an incremental benefit-cost analysis with the annual equivalence approach, answer the following questions. The interest rate is given as 10% per year. Benefit/Cost Item Location X Location Y Initial construction cost (TL) 16.300.000 12.300.000 920.000 820.000 20 15 Annual maintenance and operating cost (TL/year) Entrance fee to be collected by the municipality for adults (TL) Entrance fee to be collected by the municipality for children (TL) New job opportunities for the local people (TL/year) Disbenefit to neighbors (TL/year) 15 10 450.000 400.000 150.000 140.000 a) (20 pts.) Determine which option should be selected. b) (10 pts. By considering the 'do nothing' as the third option, determine which option should be selected