Consider a policy that has benefits and costs that accrue in the following way: Year 0: Benefits = 0, Costs = 100 Year 1: Benefits = 20, Costs = 20 Year 2: Benefits = 40, Costs = 20 Year 3: Benefits = 60, Costs = 20 %3D Year 4: Benefits = 75, Costs = 20 %3D If the social discount rate is 8%, then the net present value of the policy is $__. Please round your final answer to two digits if necessary.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Consider a policy that has benefits and costs that accrue in the following way:
Year 0: Benefits = 0, Costs = 100
Year 1: Benefits = 20, Costs = 20
Year 2: Benefits = 40, Costs = 20
Year 3: Benefits = 60, Costs = 20
Year 4: Benefits = 75, Costs = 20
If the social discount rate is 8%, then the net present value of the policy is $_.
Please round your final answer to two digits if necessary.
Answer:
Transcribed Image Text:Consider a policy that has benefits and costs that accrue in the following way: Year 0: Benefits = 0, Costs = 100 Year 1: Benefits = 20, Costs = 20 Year 2: Benefits = 40, Costs = 20 Year 3: Benefits = 60, Costs = 20 Year 4: Benefits = 75, Costs = 20 If the social discount rate is 8%, then the net present value of the policy is $_. Please round your final answer to two digits if necessary. Answer:
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