Government of Equatoria is considering building a recreational swimming facility on an existing national park. Suppose...

 

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Government of Equatoria is considering building a recreational swimming facility on an existing national park. Suppose the project costs $200,000 to build in the current year and discount rate is 2%. The estimated return is $20000 for next 10 years from leisure activities undertaken by residents. Should the project be implemented? What other costs should the government consider in their decision. Government of Equatoria is considering building a recreational swimming facility on an existing national park. Suppose the project costs $200,000 to build in the current year and discount rate is 2%. The estimated return is $20000 for next 10 years from leisure activities undertaken by residents. Should the project be implemented? What other costs should the government consider in their decision.

Answer rating: 100% (QA)

Use NPV to make financing decision Initial outlay 200000 Discount rat... View the full answer