Initial government estimates indicate that the Portpatrick-Larne Bridge would cost $18.75 billion ($18,750,000,000) with costs spread equally over the first five years ($3.75B a year). Assume that once the bridge is completed it will last indefinitely with proper maintenance and produce cash flows of $200 million ($200,000,000) per year net of maintenance expenses. Unless otherwise indicated you may assume that the project's cost of capital is the 30 year interest rate on UK government bonds (called Gilts) of 0.86% per year. For simplicity, assume that interest is paid annually. FYI, this is a real project under consideration and some of the numbers in this problem were taken from press accounts of the project. (5) Prime Minister Johnson's advisers argue that building the bridge will create intangible benefits (non-economic but valuable benefits) like increased national cohesion and eas- ier deployment of military and emergency resource. They estimate these benefits, which were not included in the earlier figure, are worth an additional $100M per year once the bridge is completed and in all future years. Evaluate this project using these revised cost estimates in part 1.2, the revised benefits, and the quantitative tools we studied in class. Do you recommend that Prime Minister Johnson go ahead with this project? Explain why or why not. (10) Use the tools from class to compare the weighted timing of the cash-flows of the 0.86% thirty year Gilt with this project. Which is more sensitive to movements in discount rates? What would be a more appropriate bond term for this project and why