NPV) test, and should these countries create the Green Wall (remember to total the annual NPV across all years 0-10)? Su Green Wall Benefits/Costs Costs thousands of $) Initial planting costs Recurring maintenance and water costs Years 0 1 2 3 4 5 6 7 8 9 10 2000 000 oooooo 이 0150150150150150 150 150 150 150 150

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
icon
Related questions
Question
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
2000 o o o o o o 0 0 o o
planting
costs
Recurring
maintenance
and
0150150150150150 150 150 150 150 150
water
costs
Benefits
Improved
agriculture
yields
O 50 50 75 75 75 100 100 100 100 150
Job
ono0100100150150200200300300400
creation
Cultural
o o 25 50 75100 150200300400500
values
NPV @
0%
NPV @
7%
Select one:
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.
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 2000 o o o o o o 0 0 o o planting costs Recurring maintenance and 0150150150150150 150 150 150 150 150 water costs Benefits Improved agriculture yields O 50 50 75 75 75 100 100 100 100 150 Job ono0100100150150200200300300400 creation Cultural o o 25 50 75100 150200300400500 values NPV @ 0% NPV @ 7% Select one: 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.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Effect Of Interest Rate
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College