The Tennessee Department of Highways (TDOH) is considering building its first tolled bypass around the town of Greenfield, Tennessee. The initial cost of the bypass is estimated to be $5.7 million. The installation of a tolling system along the bypass is estimated to cost $1.3 million. The annual maintenance cost of the bypass is expected to be $105,000 while the annual costs associated with the tolling are expected to be $65,000 each year. The construction of the bypass is expected to yield Greenfield estimated tax revenues of $225,000 per year. In addition, TDOH has projected user savings of $100,000 each year. Each user of the bypass will pay a toll of $0.90 TDOH estimates that there will be a total of 500,000 users of the bypass each year. Other relevant data are as follows:

Resurfacing Cost (every 7 years)	4% of bypass initial cost
Shoulder grading/rework	90% of resurfacing cost

If the state uses a discount rate of 7%, should the tolled bypass be constructed? Assume perpetual life.