Use the following table from the Office of Management and Budget (OMB) to apply the appropriate,...

 
 

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Use the following table from the Office of Management and Budget (OMB) to apply the appropriate, inflation-adjusted discount rate to determine the Net Present Value (NPV) of the proposed project. Please use an Excel file and include the file as part of your Problem Set submission. Discount 3-Year 5-Year 7-Year 10-Year 20-Year 30-Year Rates Nominal 4.0% 3.8% 3.8% 3.9% 4.2% 4.2% Real 1.2% 1.3% 1.4% 1.5% 2.0% 2.0% NPV Worksheet Year since Expected yearly Expected yearly benefit initiation, renewal cost Discount factors for x% PV of costs PV of benefits or expansion (1) (2) (3) (4) (5) (6) 1 $2,330.00 $0.00 2 $4,662.00 $0.00 3 $6,994.00 $1,250.00 4 $6,994.00 $2,500.00 5 $4,665.00 $7,500.00 6 $2,336.00 $10,000.00 7 $1,172.00 $10,000.00 8 $1,172.00 $10,000.00 9 $1,172.00 $10,000.00 10 $1,172.00 $6,250.00 End of Project a. Choice of correct discount rate (2pt) b. Fill out column 4 (2 pts) c. Fill out column 5 (2 pts) d. Fill out column 6 (2 pts) e. What is the NPV of the project? (2 pts) Use the following table from the Office of Management and Budget (OMB) to apply the appropriate, inflation-adjusted discount rate to determine the Net Present Value (NPV) of the proposed project. Please use an Excel file and include the file as part of your Problem Set submission. Discount 3-Year 5-Year 7-Year 10-Year 20-Year 30-Year Rates Nominal 4.0% 3.8% 3.8% 3.9% 4.2% 4.2% Real 1.2% 1.3% 1.4% 1.5% 2.0% 2.0% NPV Worksheet Year since Expected yearly Expected yearly benefit initiation, renewal cost Discount factors for x% PV of costs PV of benefits or expansion (1) (2) (3) (4) (5) (6) 1 $2,330.00 $0.00 2 $4,662.00 $0.00 3 $6,994.00 $1,250.00 4 $6,994.00 $2,500.00 5 $4,665.00 $7,500.00 6 $2,336.00 $10,000.00 7 $1,172.00 $10,000.00 8 $1,172.00 $10,000.00 9 $1,172.00 $10,000.00 10 $1,172.00 $6,250.00 End of Project a. Choice of correct discount rate (2pt) b. Fill out column 4 (2 pts) c. Fill out column 5 (2 pts) d. Fill out column 6 (2 pts) e. What is the NPV of the project? (2 pts)