The government of Costa Rica is trying to decide between building a bridge over the Tempisque River and improving the ferry system to be the source of transportation between Guanacaste and San Jose. After doing all evaluations it was determine that the cost of the bridge is $2.2 million with a yearly benefit of $220,000. The bridge has a useful life of 50 years. The cost of the ferry system is $325,000 with a yearly benefit of $55,000. The useful life of the ferry system is 10 years. It is also estimated that the salvage values of the bridge and ferry system are $750,000 and $25,000 respectively. Using a discount rate of 8 percent and assuming that benefits and costs are realized at the end of the year: [10] a) Determine which of the two projects have the larger net benefit by rolling over the ferry system. [3] b) Calculate the equivalent annual net benefit for both the bridge and the ferry system. [3] e) It is determined that the benefit of the ferry is dependent on rainfall. In a drought year the yearly benefit is $40,000 and in a normal year it is $70,000. Drought years occur with probability 0.3 while normal years occur with probability 0.7. What is the equivalent annual net benefit of the ferry given the uncertainty