Assume a project will result in benefits of $1.2 trillion in 500 years by avoiding an environmental
Question:
Assume a project will result in benefits of $1.2 trillion in 500 years by avoiding an environmental disaster that otherwise would occur at that time.
a. Compute the present value of these benefits using a time-constant discount rate of 3.5.
b. Compute the present value of these benefits using the time-declining discount rate schedule suggested in this chapter.
Discount RateDepending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Related Book For 
Cost-Benefit Analysis Concepts and Practice
ISBN: 978-1108401296
5th edition
Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. Weimer
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