A proposal for a new bridge across one of the province's principal rivers is expected to cost $350 million. The major benefits of this bridge is to reduce traffic congestion on the surrounding bridges and tunnels and to lower accident rates. This bridge will add $14 million per year to the highways department operating costs. The benefits have been estimated to translate into $50.75 million per year in reduction in travel time (projected from estimates of average reduction in travel time per vehicle, cost per hour of averaged vehicle use, and volume of vehicles per year). Furthermore, the insurance corporation estimates that reduced number of accidents will save $3 million a year in insurance claims. a) Determine the Benefit Cost Ratio of this proposal using: BCR = Present Value of Benefits - Present Value of Costs / Initial Cost of the Investment The evaluation uses an interest rate of 10% and a bridge life of 25 years. b) What would be the EUAW for this proposal? c) A deluxe version of the bridge proposal would cost an extra $150 million dollar in initial investment. The operating costs due to more lanes and heavier construction would be an additional $5 million per year. The extra benefits would increase by another $12.5 million annually due to saved travel time and $1 million in reduced accident claims. It would also increase the service life by ten years. Find the EUAW of this deluxe version proposal using a life of 35 years. If the funds were available, would it be economically justified to implement the deluxe version of the bridge proposal?