2. Present Value and Discounting (25 points) Th e World Bank is considering an application from the country of Bolivia for a large am project. Some project costs and benefits (dollar values) are as follows: Construction costs: $500 million/year Operating costs: $50 million/year Hydropower to be generated: 3 billion kilowatt hours/year Price of electricity: $0.05/kilowatt hour Irrigation water available from dam: 5 billion gallons/year Price of water:$0.015/gallon Agricultural product lost from flooded lands because of dam: $45 million/year Forest products lost from flooded lands because of dam: $20 million/year formal benefit-cost analysis, assuming a 5-year time horizon and a discount rate Ensure that you discount all future benefits and costs to find present values. of 3%. Provide the net present value and benefit-cost ratios associated with the proi Would you recommendation to the World Bank be a definite "yes", definite "maybe" on the project