DOT wants to install a traffic signal at a dangerous
intersection on US-51. The traffic signal will cost $450,000. Based
on historical data, it will eliminate, on average, one fatal
accident every 10 years, but will cause 5 additional minor
accidents every year. The standard cost assigned to fatal accidents
is $12,300,000 and the cost assigned to minor accidents is $160,000
each. At an interest rate of 4% per year, does the B/C ratio
justify the cost of the signal?...