Show work please!

3. The current social cost of funds is r = 0.05. A new project will widen sidewalks and narrow roads in downtown Ann Arbor. This will cause cars to avoid driving through downtown, while those that do drive through will go slower. It will create more room for sidewalk dining under shade trees. It will improve the quality of life of pedestrians by a value of $ lmillion per year, forever. a. What is the present value of the benets of this trafc-calming project? b. Now the cost of public funds rises to r = 0.1. How does this change the public willingness-to- pay for this project? c. Explain in your own words how and why the willingness to pay for a project changes as the interest rate rises