That bike is probably a 70's model, going by the handlebar shifter. It's got the good raleigh rims. The date should be stamped in 2 digits on the rear hub shell on that Sturmey Archer 3 speed with coaster brake wheel. It is an english made Raleigh, so it's a good solid bike that will last a long time. It may need tires, they are 26 x 1 3/8ths. On the ones I've come across, the original paint is good quality, it will probably clean up and look great with soap, water, and a couple coats of car wax. If your friend likes it, and it's the right size, I would say fix it up and ride it. A nice Brooks saddle will be a good addition, although that seat on it may be in pretty good shape. To fix it up for resale may not be a good idea, in great shape it may only get around $100. As for putting money into it, it looks like it just needs a good cleanup and some lube. The chrome on that bike will clean up with fine steel wool and a little oil or wd-40. If the tires are good and they hold air, it won't need anything but cleaned up.
