(20 pts) A city needs a new pedestrian bridge over a local stream. The city uses an interest rate of 5% to calculate the benefit-cost ratio of a project. The project life is expected to be 30 years. The following data summarizes two bids which were received. a. What is the Benefit-Cost Ratio for Bid B (use the AE method) b. What would the annual benefit from Bid A have to be for the bids to be equivalent? Construction costs (all inclusive) Annual operating costs Annual benefits (tolls) from operation Bid A ($M) 5.75 0.05 Unknown Bid B (SM) 6.94 0.075 0.65 (20 pts) A city needs a new pedestrian bridge over a local stream. The city uses an interest rate of 5% to calculate the benefit-cost ratio of a project. The project life is expected to be 30 years. The following data summarizes two bids which were received. a. What is the Benefit-Cost Ratio for Bid B (use the AE method) b. What would the annual benefit from Bid A have to be for the bids to be equivalent? Construction costs (all inclusive) Annual operating costs Annual benefits (tolls) from operation Bid A ($M) 5.75 0.05 Unknown Bid B (SM) 6.94 0.075 0.65