The City of Toronto added a new subway station in a neighborhood between two existing stations. After the station was built, the average house price increased by $20,000 and the average commute time fell by 15 minutes per day. Suppose that there is one commuter per household, that the average commuter works 5 days per week, 50 weeks per year, and that the benefits of reduced commuting time apply to current and future residents forever. Assume an interest rate of 5%. Produce an estimate of the average value of time for commuters based on this information. Could the construction of the new subway station have affected the home prices for reasons unrelated to commuting time? If so, how would that affect your estimates of the average value of time for commuters? [Hint: The present discounted value of receiving $V each year in perpetuity is given by V/r, where r is the interest rate]