The construction cost of a public project is believed to be either $15 million or $16million. It will require $500,000 each year for annual maintenance. The annual benefits to the public have been estimated to be $5 million and annual disbenefits to the public have been estimated to be $300,000. If the study period is 9 years and the interest rate is 5% per year, should the project be constructed? i = 5% N F/P P/F FIA PIA A/F A/P PIG A/G N 1 1.05 0.9524 1 0.9524 1 1.05 0 0 1 2 1.1025 0.907 2.05 1.8594 0.4878 0.5378 0.907 0.4878 2 3 3 1.1576 0.8638 3.1525 2.7232 0.3172 0.3672 2.635 0.9675 3 4 st 1.2155 0.8227 4.3101 3.546 0.232 0.282 5.103 1.4391 4. 1.2763 0.7835 5.5256 4.3295 0.181 0.231 8.237 1.9025 5 5 6 6 1.3401 0.7462 6.8019 5.0757 0.147 0.197 11.968 2.3579 6 7 1.4071 0.7107 8.142 5.7864 0.1228 0.1728 16.232 2.8052 7 8 1.4775 0.6768 9.5491 6.4632 0.1047 0.1547 20.97 3.2445 8 8 9 1.5513 0.6446 11.0266 7.1078 0.0907 0.1407 26.127 3.6758 9 10 1.6289 0.6139 12.5779 7.7217 0.0795 0.1295 31.652 4.0991 10 a. This decision cannot be made based on the given information O b. If the construction cost is 16,000,000 then the project is not economically attractive, otherwise it is attractive c. For either construction cost, the project is economically attractive d. If the construction cost is 15,000,000 then the project is not economically attractive, otherwise it is attractive e. For either construction cost, the project is not economically attractive