Question: Solve it. Please be quick Q2) The Prime Minister has asked to start an Ehsas Program to provide food to the destitute. Based on the
Q2) The Prime Minister has asked to start an Ehsas Program to provide food to the destitute. Based on the following information, analyze what is the first-year's cost & benefit (2), and the total cost & benefit over time it the discount rate is 8% (2)? (18) a) Cost: The market rate of hiring a labor per hour is $15. In this project, 100,000 hours of labor is required for the first year of this project. 25% of the total labor has been spending time in leisure which they value $5/hour. Whereas 75% of the total labor have been working on the market rate (2) The requirement of capital good for this project is equivalent to a value of $15,000 for a year (2) The cost of preparing food for one day is $1,000 (2) The maintenance cost for this project is $20,000 (2) b) Benefit Employment will increase by 100,000 hours/year (2) 1 life is expected to be saved, where the value of one life is equivalent to 3 million dollars (2) 500 additional individuals will enter the job market and will become a part of the labor force as they are able to get their bellies full. These individuals will be able to work 8 hours per day (2) Q2) The Prime Minister has asked to start an Ehsas Program to provide food to the destitute. Based on the following information, analyze what is the first-year's cost & benefit (2), and the total cost & benefit over time it the discount rate is 8% (2)? (18) a) Cost: The market rate of hiring a labor per hour is $15. In this project, 100,000 hours of labor is required for the first year of this project. 25% of the total labor has been spending time in leisure which they value $5/hour. Whereas 75% of the total labor have been working on the market rate (2) The requirement of capital good for this project is equivalent to a value of $15,000 for a year (2) The cost of preparing food for one day is $1,000 (2) The maintenance cost for this project is $20,000 (2) b) Benefit Employment will increase by 100,000 hours/year (2) 1 life is expected to be saved, where the value of one life is equivalent to 3 million dollars (2) 500 additional individuals will enter the job market and will become a part of the labor force as they are able to get their bellies full. These individuals will be able to work 8 hours per day (2)
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