Xyz is a city of 100,000 people with a ratable base of 500mm. The current property tax rate is 5%, and property taxes make up 100% of the city's revenue.. The city needs to build utility infrastructure to support new developments that will increase their ratable base by $75 mm in 3 years. The estimated costs of this project is anticipated to be 25mm. They currently have a 7.5mm cash surplus, 50% of which can be immediately advanced and allocated towards the work. They will finance the remaining amount by issuing a 10-year bond at 4.5% (the par equal to the remaining project balance). Current budget estimates are to break even this year and run at a 10% loss next year. They currently have 20mm in bonds outstanding that mature in 5 years at an average interest rate of 3%. They will need to refinance these bonds at that time at the current market yield rate. City officials are not planning to raise property taxes.

What is XYZ's projected revenue & expense over the life of the new bonds?

What is their total interest expense per year

Outside of the new debt, what was the change in the costs of the existing debt?