Assume the numbers below are representative of the 11 countries. Using the table below for a 0% and 7% discount rate, does the Green Wall pass the total net present value (NPV) test, and should these countries crea the Green Wall (remember to total the annual NPV across all years 0-10)? Suggestions: I do recommend using excel. Green Wall Benefits/Costs Years O 1 2 3 4 5 6 기 8| 9 10 Costs kthousands of $) Initial planting costs 2000 o d oo Recurring maintenance and o150150150150 150 150 150 150 150 150 water costs Benefits Improved agriculture yields O 50 50 75 75 75 100 100 100 100 150 Job o100100100150150 200200 300300 400 creation Cultural o o 25 50 75|100 150 200 300400 500 values NPV @ 0% NPV O 7% Select one: O a. No, don't make the wall at 0% discount rate; Yes, make the wall at 7% discount rate. O b. No, don't make the wall at both the 0% and 7% discount rate. Oc. Yes, make the wall for both levels of the discount rate. O d. Yes, make the wall at 0% discount rate; No, don't make the wall at 7% discount rate.
Assume the numbers below are representative of the 11 countries. Using the table below for a 0% and 7% discount rate, does the Green Wall pass the total net present value (NPV) test, and should these countries crea the Green Wall (remember to total the annual NPV across all years 0-10)? Suggestions: I do recommend using excel. Green Wall Benefits/Costs Years O 1 2 3 4 5 6 기 8| 9 10 Costs kthousands of $) Initial planting costs 2000 o d oo Recurring maintenance and o150150150150 150 150 150 150 150 150 water costs Benefits Improved agriculture yields O 50 50 75 75 75 100 100 100 100 150 Job o100100100150150 200200 300300 400 creation Cultural o o 25 50 75|100 150 200 300400 500 values NPV @ 0% NPV O 7% Select one: O a. No, don't make the wall at 0% discount rate; Yes, make the wall at 7% discount rate. O b. No, don't make the wall at both the 0% and 7% discount rate. Oc. Yes, make the wall for both levels of the discount rate. O d. Yes, make the wall at 0% discount rate; No, don't make the wall at 7% discount rate.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Assume the numbers below are representative of the 11 countries. Using the table below for a 0% and 7% discount rate, does the Green Wall pass the total net present value (NPV) test, and should these countries create
the Green Wall (remember to total the annual NPV across all years 0-10)? Suggestions: I do recommend using excel.
Green Wall Benefits/Costs
Years
1 2 3 4 5 6 7 8
9 10
Costs
(thousands
of $)
Initial
planting
costs
|2000 0 여 이 이 이 0 이 이 0 01
Recurring
maintenance
and
o150150150150150 150 150 150 150 150
water
costs
Benefits
Improved
agriculture
ylelds
O 50 50 75 75 75 100 100 1o0 100 150
Job
o100100100150150 200200 300300400
creation
Cultural
o o 25 50 75100 150 200300400500
values
NPV @
0%
NPV @
7%
Select one:
O a. No, don't make the wall at 0% discount rate; Yes, make the wall at 7% discount rate.
O b. No, don't make the wall at both the 0% and 7% discount rate.
O c. Yes, make the wall for both levels of the discount rate.
O d. Yes, make the wall at 0% discount rate; No, don't make the wall at 7% discount rate.
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