Student Number: $8965606$

Question $1$

A municipal project has been proposed that will require the development of a series of roads. Four proposals are under consideration, all of which have different costs, benefits, and disbenefits. A summary of the four proposals is shown in the table below.

Which is the best proposal? The life of the roads is expected to be $46$ years for all four options. The applicable interest rate is $5\mathrm{.}00\%$ compounded yearly.

$\backslash$table$[[,$Option W$,$Option X$,$Option Y$,$Option Z$],[$Benefit $($$$/$year$),$$$2,910,000\mathrm{.}00,$$$2,770,300\mathrm{.}00,$$$2,612,000\mathrm{.}00,$$$2,906,600\mathrm{.}00],[$Disbenefit $($$$/$year$),$$$432,000\mathrm{.}00,$$$349,800\mathrm{.}00,$$$403,440\mathrm{.}00,$$$377,400\mathrm{.}00],[$Initial Cost $($$$),$$$34,250,164\mathrm{.}00,$$$23,419,511\mathrm{.}00,$$$18,233,823\mathrm{.}00,$$$45,574,200\mathrm{.}00],[\backslash$table$[[$Maintenance & Operating Cost$],[($$$/$year$)]],$$$428,000\mathrm{.}00,$$$394,120\mathrm{.}00,$$$481,556\mathrm{.}00,$$$383,555\mathrm{.}00]]$