Transport for NSW (TINSW) is developing a new motorway. By reducing the amount of time that drivers spend travelling to work, the road is expected to bring economic benefits to NSW. The following data is available and TINSW has a MARR of 8%. Assume at the costs and benefits of the new motorway will last forever. Capital Investment $20,750,000 Annual Maintenance Costs $550,000 Resurfacing Cost (every 8 years) 10% of capital investment Repainting Cost (every 6 years) $750,000 Average number of drivers per year 2.950,000 Average economic benefit per user per road $2 (a) What is the modified B/C ratio in this scenario? Should TINSW proceed with this project? (2 marks) (b) Briefly explain the difference between the conventional and modified B/C ratio? Note that this is a theory question (no calculations are required). (2 marks) (c) An alternative project has a modified B/C ratio of 6. TINSW has decided to proceed with the alternative project instead of the new motorway. Is this the correct decision? Why or why not? (1 mark)