In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, then the net present value of the policy would have been __; if it had used a 4% social discount rate, then the net present value of the policy would have been a. lower; lower. O b. higher; lower. O c. higher; higher. d. lower; higher. Clear my choice
In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, then the net present value of the policy would have been __; if it had used a 4% social discount rate, then the net present value of the policy would have been a. lower; lower. O b. higher; lower. O c. higher; higher. d. lower; higher. Clear my choice
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:In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative net
benefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, then
the net present value of the policy would have been
__; if it had used a 4% social discount rate, then the net present
value of the policy would have been
a. lower; lower.
O b. higher; lower.
O c. higher; higher.
d. lower; higher.
Clear my choice
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