Below are some of the cost breakdown for a proposed federal government highway construction Study the figures below and answer the following questions

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Below are some of the cost breakdown for a proposed federal government highway construction Study the figures below and answer the following questions. Profitability of Highway Construction Estimation of benefits to users Construction of 18 1 Time per trip (minutes) 2 Time cost of trip (RM 4 per hour) 3 Other costs per trip RM 1.20 RM10 4 Total variable cost per year RM4.650.000 5 Total Benefits per year RM812.500 6 RM8.673-438 Present value of benefits (8 percent, 25 years) Estimation of project cost 7 Capital cost RM4.000.000 8 Annual maintenance cost Increase in maintenance costs RM 60.000 RM10,000 9 1 0 Present value of increased maintenance RM 106,750 costs (8 percent, 25 years) Total Project cost, present Value of costs RM 4,106,750 1 1 . What is the benefit-cost ratio of the above project? marks) b. Should we go ahead with the project, taking into account the present value analysis, and why? c. The details above describe the benefits and costs to direct highway users only. What are some of the indirect benefits and costs that must be considered in the final evaluation of the project! (8 mars) dIn measuring social and cost benefits, we are always confronted with the challenge of monetising costs and benefits. What are some of the ways that economists have come up with when it comes to measuring-monctized costs and benefits? Are these good approximates of the real benefits and cost