s are worth 15 points unless otherwise noted. 1) The Town of Chapel Hill is determining whether or not to add bike lanes to several roads around town. To do so, many of the roads would have to be widened, which always results in certain levels of uncertainty in determining the costs of the project. One of the big uncertainties is in the cost of obtaining a right of way to the private land abutting the roads. Assume that there is a 75% chance that the Town will face a large number of lawsuits challenging their taking of the lands. Using the following numbers, evaluate the expected cost of doing the project. Construction Costs: $15 million Right of Way Costs Option A (no lawsuits): $4 million Right of Way Costs Option B (lots of lawsuits): $12 million 2) (10 points) Several residents of the town would prefer to use the money currently set aside for the bike lane project above to construct a new soccer complex for the local recreational youth league. That project is estimated to cost $18 million. Assume that the soccer complex will serve approximately 10,000 people per year, while roughly 15,000 people will use the bike lanes. Which project should we do? How did you reach your conclusion? 3) (10 points) If I wanted to calculate the actual monetary benefits of the soccer people and bike people respectively, what would be a good way to do it? 4) I need to decide between two alternative proposals to reduce congestion on and near the UNC campus. Propos