Question 1 A municipal project has been proposed that will require the development of a series of roads. Four proposals are under consideration, all of which have different costs, benefits and disbenefits. As summary of the four proposals are shown in the table below. Which is the best proposal? The life of the roads is expected to be 48 years for all four options. The applicable interest rate is 6.00% compounded yearly. Option W Option X Option Y Option Z Benefit ($/year) 2,720,100 2,825,300 2,650,200 2,290,000 Dis-benefit ($/year) 450,000 331,000 430,000 357,000 Initial Cost ($) 31,024,901 20,420,170 24,276,718 13,433,416 Maintenance and Operation Costs ($/year) 504,000 383,960 516,000 371,280