Question $2$

The city council of a fast$-$growing city in the west of Canada is planning to construct a new tunnel to help improve the traffic flow in the city. Construction is to start in $2020$ and is expected to last for four years at a cost of $$16$ million per year. After construction is completed, the regular cost of operation and maintenance is expected at $$1$ million for the first year, increasing by $$80,000$ per year thereafter. To help the city recover the construction cost, the tunnel will operate for the first $25$ years as a toll way $($till end of $2048).$ Expected return from toll fees is estimated at $$8$ million per year. Consider the present to be the end of $2018/$beginning of $2019,$ the service life of the project to be till end of year $2058,$ and the interest rate to be $6\%.$