1. A city is considering the introduction of special signals for buses on a street with a bus lane, which would increase their travel speed. The transit company, looking only really at its own finances, is willing to contribute towards the cost of the signals if it can save a corresponding amount withing two years by reducing the number of buses needed for the line operation. Savings amount to about $40K/bus/year. The line is 5.33 km long (one way). Present operating speed is 8 km/h. Terminal time (which can't be reduced is 8 minutes) at each end, and the headway is 12 minutes.
   1. What travel speed should the signals provide so that the company would be willng to contribute a) $50K and b) $90K?
   2. What other benefits should the company consider?