2. [18 points] The federal government is considering allocating $10 billion to local health departments this year and then an additional $5 billion dollars for the next two years (that is, spending is $10 billion ir t=0, $5 billion in t=1, and then another $5 billion in t=2 ). This spending will have no effect until period 2 , at which point it will save 5,000 lives. a) Suppose the government assumes a value of a statistical life of 2 million and a discount rate of 0.05. What is the present value of the federal spending? Should the government allocate the money to the health departments? b) Suppose the government assumes a value of a statistical life of 5 million and a discount rate of 0.05. What is the present value of the federal spending? Should the government allocate the money to the health departments? c) Suppose the government assumes a value of a statistical life of 5 million and a discount rate of 0.10. What is the present value of the federal spending? Should the government allocate the money to the health departments