Ethiopia's government proposes paving existing roads or building modern intersections in cities to reduce maintenance costs. An unimproved signalized intersection at 6° 51′ 47.9″ N and 37° 45′ 50.1″ E is selected for this research. Cost-benefit analysis is used to evaluate the proposed innovative approach to designing and implementing an intersection and to compare whether the new road projects will have an adequate return. This research suggests converting the current intersection into a signalized roundabout to calm traffic. Signalized roundabouts have a higher net present value and a modified internal rate of return than improved signalized crossing intersections. Considering the country's high inflation rate, three scenarios recommend using a signalized roundabout.