Replacing the elevated section of I-81 that runs through downtown Syracuse with a street grid entails costs and benefits. We will look at the first 4 years (years 0 - 3). Assume the construction begins in 2020 (year 0). Tearing down and rebuilding will require 4,000,000 bags of asphalt at a price of $200/bag and 90,000,000 man hours at a cost of $20/hour. Assume all construction takes place in year 0 (it's fast!). Maintenance will cost $10,000,000 each year thereafter (years 1 - 3). The benefits of the project will start to flow in year 1. The benefits are 20 saved lives per year at a value of $7,000,000/life and saved driving time of 500,000 hours per year which are valued at the average wage of $20/hour. These benefits will flow in years 1 - 3. Real interest rates are 7%.

(a) Show how you would solve for the total benefits of the replacing the highway by filling out the chart below. You do not need to solve, just show the annual benefit and how you would discount this to the present value.