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Suppose that the City of Nairobi is planning a bid to host the 2032 Olympics and has estimated the following benefits: The estimate + benefits

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Suppose that the City of Nairobi is planning a bid to host the 2032 Olympics and has estimated the following benefits: The estimate + benefits at the end of year 1 (,) are $300 million, at the end of year 2 (B) are $200 million, and at the end of year 3 (s) only $100 million (after the third year there are no further benefits). If the estimated Interest rate is 4% (0.04) then using the estimated value of benefits equation below. calculate the maximum value (and therefore, the maximum amount that Nairobi should bid) for the 2032 Olympics. B. B v-dtbtaintain B (1+(1+3+1+1) V

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