Question: Consider a project that costs $10,000 today. It will provide benefits of $4,000 at the end of Year 1, $3, 500 at the end of
Consider a project that costs $10,000 today. It will provide benefits of $4,000 at the end of Year 1, $3, 500 at the end of Year 2, and $3, 500 at the end of Year 3. If the discount rate is 6%, will this project be approved using cost-benefit analysis? Would your answer change if the discount rate is: (a) 5%, (b) 4%?
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