Question: 2 1 point A city is considering building a new port, which will have an immediate cost of $800m to build, and a net benefit

 2 1 point A city is considering building a new port,

2 1 point A city is considering building a new port, which will have an immediate cost of $800m to build, and a net benefit of $25m each year forever (accruing at the end of each year). With probability 0.5, the new port will damage the population of dolphins. If the damage occurs, economists estimate that it would be $15m per year forever (accruing at the end of each year). The social discount rate is 2% per year. What is the expected net benefit of the port, if the decision to build it is taken today? Give your answer to two decimal places. Tyna voir ancwar 3 1 point Generating electricity with solar and wind technologies still involves some negative externalities. Which of the following are examples of these negative externalities? (Select all that apply) Wind and solar usually have lower investment costs than other forms of generation. Wind and solar can cause gas turbines to incur start costs more frequently. Wind and solar generation requires storage or fossil fuel generation as back up. Wind and solar have lower CO2 emissions than fossil fuel generators

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!