Question $30(1$ point$)$

Suppose that the City of Nairobi is planning a bid to host the $2032$ Olympics and has estimated the following benefits:

The estimated benefits at the end of year $1($B$1)$ are $$300$ million, at the end of year $2($B$2)$ are $$200$ million, and at the end of year $3($B$3)$ only $$100$ million $($after the third

year there are no further benefits$).$ If the estimated interest rate is $4\%($r $=0\mathrm{.}04)$ then

using the estimated value of benefits equation below, calculate the maximum value $($and therefore, the maximum amount that Nairobi should bid$)$ for the $2032$ Olympics.

B$1$

$$

$11$

B $2$

$1+7$

$173$

A

$$555,421,869$

$$574,812,436$

$$562,272,417$

$$534,998,971$