Q3) a) University Grants Comumission (UGC) is planning to award a grant of 550,000 , w to Jamia Millia Islamia to upgrade its engineering education. The grant will extend over a penod of 10 years and will create an estimated savings of $5,000,000 per year in faculty salaries and student-related expenses. VGC uses a rate of teturn of 5% per year an all grants award. This grant will share UGC funding with ongeing activities, so an estimated $200,000 will be removed from other program funding. To make this program succesaful, 5500,000 per year operating cost will be incurred from the regular maintenance and operation budget. Use the BC method to determine if the grant is econcanically justified? b) The fire chief of Delhi has estimated that the inatial cost of a ncw fire station will be \$20,000,000. Anmual maintenance and operation costs are estunated ar 51,500,000. Benefits to citizens of $2,750,000 per year and disbenefits of $450,000 have alme been idenified. The discount rate is estirnated to be 5% per year. Use the BV method to determine if the fire atatica is ecuenmically justified? Q3) a) University Grants Comumission (UGC) is planning to award a grant of 550,000 , w to Jamia Millia Islamia to upgrade its engineering education. The grant will extend over a penod of 10 years and will create an estimated savings of $5,000,000 per year in faculty salaries and student-related expenses. VGC uses a rate of teturn of 5% per year an all grants award. This grant will share UGC funding with ongeing activities, so an estimated $200,000 will be removed from other program funding. To make this program succesaful, 5500,000 per year operating cost will be incurred from the regular maintenance and operation budget. Use the BC method to determine if the grant is econcanically justified? b) The fire chief of Delhi has estimated that the inatial cost of a ncw fire station will be \$20,000,000. Anmual maintenance and operation costs are estunated ar 51,500,000. Benefits to citizens of $2,750,000 per year and disbenefits of $450,000 have alme been idenified. The discount rate is estirnated to be 5% per year. Use the BV method to determine if the fire atatica is ecuenmically justified