A city agency is debating if they should build a new transit line - which can be assumed to be a permanent investment. It is expected that the initial/first costs will be $200 M. It will require maintenance and operations costs of $8 M per year. Annual revenues are projected to be $15 M in the rst year increasing by 100,000 each year thereafter. Should the agency build the line given a minimum rate of return of 5% per year?