ANSWER NEEDED URGENTLY! Will Rate!

Question 4 (20 Points): The transportation ministry is considering renovating a critical highway to improve service, reduce accidents, and reduce traffic congestion. The ministry is considering three mutually exclusive methods of renovation as shown in the table below. The first and the second type include resurfacing the asphalt, while the third method includes resurfacing and widening the right of way. The annual number of accidents over this highway is 280 accident with an average cost of $1,500 per accident. Annual MARR of 7%, as shown in the table below. X Y z 10.5 13.8 17.5 1.1 1.15 2.20 15% 20% 30% Method of Renovation Initial Cost ($) in million Maintenance Cost ($ in million) per year Expected % reduction in number of accidents Reduction in the daily vehicle operating costs per vehicle Reduction in travel time (minutes) per vehicle Estimated traffic volume (no. of vehicles per day in each year) Value of saved time per hour Estimated life (years) $5 $7 $10 10 15 20 600 800 900 $20 $20 10 $20 15 15 a) What is the annual worth of Net Costs for methods of renovation X, Y, & Z? b) What is the annual worth of Net Benefits for methods of renovation X, Y, & Z? c) What is the BCR for methods of renovation X, Y, & Z? d) Using incremental comparison, which method of renovation is the best alternative