The highway department is considering the construction of a bridge over a narrow inlet of a lake, thereby reducing the trip on this section of highway by 20 miles. Three options are being studied: (1) keep using the present highway; (2) build a bridge; (3) build the bridge and charge a toll. If the bridge is built, the present highway will continue to be maintained, but it is expected that traffic volume on it will be significantly reduced. As a result, roadside businesses will suffer a loss in revenues. Listed below are the various costs/incomes to the highway agency and benefits/disbenefits to the public, associated with each option. PRESENT BRIDGE HIGHWAY 1 WITH TOLL BRIDGE $46,000,000 $46,000,000 $160,000 $240,000 $180,000 Investment cost to highway agency Annual operating and maintenance cost incurred by highway agency Annual vehicle operating cost to road users Annual time saving for road users $3,300,000 $100,000 $100,000 $2,000,000 $2,000,000 Annual cost of accidents incurred by road users $500,000 $10,000 $10,000 Annual revenue lost by roadside businesses $1,000,000 $1,900.000 General annual benefits to road users $5,000,000 $5,000,000 $5,000,000 Annual toll revenues $1,200,000 Compare these three options using benefit-cost analysis. Use AE values in your calculations. This highway agency uses an interest rate of 10%, a study period of 40 years, and considers toll revenue to be both an income to the agency and a disbenefit to the public. Which of the three alternatives is more desirable