The government has hired you as a public finance analyst to help decide on whether to approve a proposed construction project. The project has been forecasted to generate $14 million in benefits today, $5 million in benefits one year from now, and $1 million in benefits two years from now. Also, the government will have to pay the builder $20 million in costs two years from now.

A. Calculate the net present value of the project's stream of benefits assuming a discount rate of 10%. (2 points)

B. Calculate the maximum amount that the government would have to save today to pay off the builder in two years assuming that it would receive an interest rate of 10% on the savings. (3 points