The city of Middleville is considering offering public bus service. Setting up the service will cost the city $$1\mathrm{.}8$M$.$ The useful life of the buses is $18$ years. Annual maintenance of the buses would cost $$119,000$ per year and they would need a major overhaul in year $12$ that will cost a total of $$1,035,000.$ This overhaul is in addition to the annual maintenance. Annual labor and administrative costs will begin at $$260,000$ in year $1$ and grow at $1\mathrm{.}0\%$ per year thereafter. The buses will generate a revenue of $$315,000$ in year $1$ and it will grow at $5\mathrm{.}5\%$ per year thereafter. Reduced parking requirements and other benefits generated by the project will save the city $$395,000$ per year. The salvage value $($price the city can get in the future after maintenance$)$ of the used buses in year $18$ is expected to be $$455,000.$ What is the NPV of the bus proposal? The city does not pay taxes and the discount rate is $4\mathrm{.}9\%.$ Assume that all cash flows except initial investments happen at the end of the year and you are strongly encouraged to use a spreadsheet to solve this problem

$$3,248,998\mathrm{.}55$

$$3,441,331\mathrm{.}02$

$$4,024,285\mathrm{.}30$

$$3,953,155\mathrm{.}88$