1. Cost-benefit analysis using net present value (or present discounted value-same thing) calculations: A new program to reduce air emissions of particulate matter costs $ 100 to initiate and $60 per year to operate in each of the next 10 years. As a result of the improved air quality, public health improves. The public health benefits in years 1 through 10 have monetary values as shown in the benefits column of the table below. What is the Net Present Value (NPV) of this initiative if you use the NOMINAL discount rate recommended by the Office of Management and Budget (OMB) of (approximately) 3%? Is this initiative worth starting? What would NPV be if you use OMB's recommended REAL rate of discount of 1%? Is the initiative now (or still) worth starting? [Please show the formula you would use to calculate NPV, but it is perfectly fine (and a great idea) to copy the table below into a spreadsheet and do the actual calculations there. Hint: you'll find a suitable formula in the reading for this session.] Year Benefit Costs 0 100.00 1 240.00 60.00 2 156.10 60.00 3 101.53 60.00 4 66.04 60.00 5 42.95 60.00 6 27.94 60.00 7 18.17 60.00 8 11.82 60.00 9 7.69 60.00 10 5.00 60.00