Assignment:
Several new big-box stores have created additional congestion at an intersection in north Buffalo, NewYork. City engineers have recommended the addition of a turn lane, a computer-controlled signal, and sidewalks, at an estimated cost of $1.5 million. The annual maintenance costs at the new intersection will be S8000, but users will save S50 000 per year due to reduced waiting time. In addition, accidents are expected to decline, representing a property and medical savings of $175 000 per year. The renovation is expected to handle traffic adequately over a 10-year period. The city uses a MARR of 5%.
(a) What is the BCR of this project?
(b) What is the BCRAI of the project?
(c) Comment on whether the project should be done.
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.