urgent

Question #3 (20 Points): The transportation ministry is considering adding bike lanes and stations for bike renting to encourage biking and reduce traffic congestion. The ministry will allow advertisement (Ads) in the bike stations to help recover expenses. The ministry is considering three major cities to start with, however, it can only execute one of them for the time being due to limited budget. The ministry's required rate of return is 3%. City A 7,500,000 100,000 City B 8,500,000 150.000 City C 12,000,000 185.000 3.00 4.00 5.00 85,000 City Initial Cost (S) Annual operating and maintenance costs Bike rentals (EGP per biker) Number of bikers per year Fees charged per Ad in the bike station No. of Ads per year Reduced travel time (min per vehicle) due to less congestion Traffic Volume (#vehicles per year) Monetary Value of reduced travel time (EGP/min) Estimated life (years) 55,000 10,000 70,000 15,000 20,000 20 20 20 10 12 15 5,000 7.500 8,000 10 12 15 10 10 10 a) Preparing for a Benefit-Cost Analysis, answer the following questions: What is the annual worth of Net Costs for cities A, B, & C? What is the annual worth of Net Benefits for cities A, B, & C? What is the BC ratio for each city A, B, & C based on AW analysis? . b) Using BC incremental comparison, which city is the best alternative