What is the NPV of the project for the whole city? [Hint: The costs and benefits both start in year 1, not year zero. Use the formula for the NPV of an infinite stream of payments.]p

CILIUL 300. At the end of the year, you expect to resell the bicycle for $350. The benefit to you of using the bicycle is the equivalent of $170. a. What is the internal rate of return? b. If the discount rate is 5 percent, should you buy the bicycle? Bill rides the subway at a cost of 75 cents per trip, but would switch if the price were any higher. His only alternative is a bus that takes five minutes longer, but costs only 50 cents. He makes 10 trips per year. The city is considering renovations of the subway system that would reduce the trip by 10 minutes, but fares would rise by 40 cents per trip to cover the costs. The fare increase and reduced travel time both take effect in one year and last forever. The interest rate is 25 percent