Consider a one-year project that costs $300,000, provides an income of $70,000 a year for five years, and costs $30,000 to dispose of at the very end of the fifth year. Assume that the first payment comes at the start of the year after the project is undertaken. Should the project be undertaken at a 0% discount rate? How about 2%? 5%? 10%?
Answer to relevant QuestionsSeveral public interest watchdog groups point out “pork” in the federal budget—spending that they claim would have little or no national benefit but would benefit small number of people in a geographically concentrated ...The Budget Enforcement Act (BEA) of 1990 created a pay-as-you-go (PAYGO) system prohibiting any policy changes which increased the estimated deficit in any year in the subsequent six-year period. Another type of possible ...Answer the following two questions for each of the following examples: (i) smoking by individuals; (ii) toxic waste production by firms; (iii) research and development by a high-tech firm; and (iv) individual vaccination ...Some people were concerned that the 1990 amendments to the Clean Air Act (CAA) would generate “hot spots” of pollution—localized areas with very high concentrations of pollutants. Why might the amendments lead to such ...Congressman Snitch argues that since obesity causes so many serious health problems, fatty foods should be regulated. Do you agree with him?
Post your question