Three transportation projects have been proposed to increase the safety on a roadway intersection. The following table shows the costs related to each project alternative. Assuming a 10% interest rate, calculate the present worth of cost of each alternative and determine the best alternative.

Show all of your calculations and draw the cash flow diagram of each alternative neatly, please.

\begin{tabular}{|l|l|l|l|l|} \hline Alternative & InitialConstructionCost($) & AnnualOperatingCost($) & LifeSpan(Years) & SalvageValue($) \\ \hline 1 & 100,000 & 20,000 & 15 & 25,000 \\ \hline 11 & 120,000 & 16,000 & 15 & 30,000 \\ \hline III & 50,000 & 25,000 & 10 & 5,000 \\ \hline \end{tabular}