Problem 4 (Incremental ROR A company is considering the projects shown below, all of which can be considered to last forever If the company MARR is 18% per year, use rate-of-return analysis to determine which should be selected a) If the alternatives are independent, and b) If the alternatives are mutually exclusive. 20000 4000 First cost -10000 -15000 70000 Annual income 2000 2950 10000 Problem 5 (B/C Analvsis) a) Three mutually exclusive highway bridge projects are under consideration by a governmental agency. Which of three bridges, if any, should be recommended to the governmental agency? Use incremental B/C analysis, an interest rte of 10% per year, compounded annually, and a life of 20 years. Compare alternative on the basis of annual worth (A W) and state which project is finally selected Project 1Project 2 950,000,000 400,000 Project3 825,000,000 715,000 990,000,000 Initial cost Annual O & M cost (S/vr) Annual Benefits (S/yr) 110,000,000 I Annual Disbenefit (Siyr) 350,000 500 350,000 120,000,000 20 99,000,000 850,000 20 Life (vear) 20 b) Assuming that you are an engineer who is performing the above analysis for a company whose client is the governmental agency, how could the result of your analysis impact public policy making or public planning? (Hint read ch. 9)