The government is contemplating to implement actions to prevent climate change. If no action is taken...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The government is contemplating to implement actions to prevent climate change. If no action is taken then climate change will happens with a probability of 80% There is a probability of 100%-80% that there will be no climate change. We will not be able to tell if there is climate change until 53 years from today In 53 years, we will know if there is climate change but it would be too late to do anything about it if climate change takes place if there is climate change, then the world will suffer a loss of $19223 a year forever starting in year 53 +1. Scentists say that we can prevent climate change for sure by reducing emissions of CO2 in year 3. The cost of reducing emissions is $847 every year forever starting in year 3+1 Assuming the discount rate is 33.6%, what is the expected value of preventing climate change? (hint: your answer should be a negative number). The government is contemplating to implement actions to prevent climate change. If no action is taken then climate change will happens with a probability of 80% There is a probability of 100%-80% that there will be no climate change. We will not be able to tell if there is climate change until 53 years from today In 53 years, we will know if there is climate change but it would be too late to do anything about it if climate change takes place if there is climate change, then the world will suffer a loss of $19223 a year forever starting in year 53 +1. Scentists say that we can prevent climate change for sure by reducing emissions of CO2 in year 3. The cost of reducing emissions is $847 every year forever starting in year 3+1 Assuming the discount rate is 33.6%, what is the expected value of preventing climate change? (hint: your answer should be a negative number).
Expert Answer:
Answer rating: 100% (QA)
To calculate the expected value of preventing climate change we need to consider the probabilities a... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these economics questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...
-
In this study researchers found a correlation between the cleanliness of the homes children are raised in and the years of schooling completed and earning potential for those children What...
-
A commercial refrigerator with refrigerant-134a as the working fluid is used to keep the refrigerated space at -35C by rejecting waste heat to cooling water that enters the condenser at 18C at a rate...
-
Which of the following is not an example of evaluating? a. Comparing actual costs and budgeted costs b. Budgeting costs between various departments c. Assessing the performance of products and...
-
Apex, Inc., had Sales Revenue of $47 million, Sales Returns and Allowances of $2 million and Sales Discounts of $0.5 million in 2010. Cost of goods sold was $24 million, and net income was $7 million...
-
Gazelle Corporation, a merchandiser, recently completed its calendar- year 2013 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts...
-
Use the following information for questions 1-4. REM had no beginning inventory, and sold all inventory it produced. The predicted financial information, production and sales volumes for November...
-
Spotlight Ltd has issued share capital of 60,000----8% redeemable cumulative preference shares of ~ 20 each and 4,00,000 equity shares of ~ 10 each. The preference shares are redeemable at a premium...
-
A 4.40 kg block of ice at 273 K encased in a thin plastic shell of negligible mass melts in a large lake at 294 K. At the instant the ice has completely melted in the shell and is still at 273 K,...
-
Random-digit dialing is a sampling method in which a computer generates phone numbers at random to call. In recent years, caller ID has become popular. Do you think that caller ID increases the bias...
-
A medical researcher wants to determine whether exercising can lower blood pressure. She recruits 100 people with high blood pressure to participate in the study. She assigns a random sample of 50 of...
-
In a survey of 500 high school students, 60% of them said that they intended to go to college. In Exercises 1720, determine whether the number described is a statistic or a parameter.
-
When multiple-choice questions are asked, the order of the choices is usually changed each time the question is asked. For example, in the 2016 presidential election, a pollster would ask one person...
-
In the 1936 presidential election, Republican candidate Alf Landon challenged President Franklin Roosevelt. The Literary Digest magazine conducted a poll in which they mailed questionnaires to more...
-
South Sea Baubles has the following (incomplete) balance sheet and income statement. YEAR-END BALANCE SHEET (Figures in millions of dollars) assets 2018 2019 Liabilities and equity 2018 2019 current...
-
Sue Deliveau opened a software consulting firm that immediately paid $2,000 for a computer. Was this event a transaction for the business?
-
Identify and describe the principal kinds of debt securities.
-
On behalf of himself and other similarly situated options investors, Rick Lockwood sued defendant, Standard & Poors Corporation (Standard & Poors), for breach of contract. Lockwood alleged that he...
-
Northwest Airlines leased space in the terminal building at the Portland Airport from the Port of Portland. Crosetti entered into a contract with the Port to furnish janitorial services for the...
-
Typical accounting specialists with designations include all of the following except: a. Certified Financial Analyst (CFA) b. Certified Public Accountant (CPA) c. Certified Bookkeeper (CB) d....
-
The Financial Accounting Standards Board is the: a. Governmental group that sets financial accounting principles. b. International group that identifies preferred international accounting principles....
-
Generally accepted accounting principles do not aim to make information in financial statements: a. Reasonable b. Relevant c. Reliable d. Comparable
Study smarter with the SolutionInn App