Suppose that a dam costs $3 million to build. The $3 million in construction costs will be
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Suppose that a dam costs $3 million to build. The $3 million in construction costs will be incurred immediately. The dam will generate net benefits of $1 million per year from years 1 (one year from today, when the project begins) through 5 (5 years after). The discount rate is 5%. What is the net present value of the benefits generated by the dam through year 5? please show work
Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
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