The local highway department is preparing an economic analysis to see whether reconstruction of the pavement on a mountain road is justified. The number of vehicles traveling on the road increases each year, hence the benefits to the motoring public of the pavement reconstruction also increase, based on a traffic count, the benefits are projected as follows:

Year                   End-of-Year Benefit

2001                            $10,000

2002                            12,000

2003                            14,000

2004                            16,000

2005                            18,000

2006                            20,000

                                    And so on, increasing

                                    $2000per year

The reconstructed pavement will cost $275,000 when it is installed and will have a 15-year useful life. The construction period is short hence a beginning-of year reconstruction will result in the end-of year benefits listed in the table. Assume a 6% interest rate. The reconstruction, if done at all, must be done not later than 2006. Should it be done, and if so, in what year