Find The net present value of the project if discounted at a social discount rate of 7%. Question III: Provide a justified policy recommendation considering the casedescribed below:($ thousands)Fiscal Year2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Benefit SourcesElement 15005255506006507008001000Element 2250350500600750800900Element 3100100100100100100100Element 40.5050505050505050Fiscal Year2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Cost SourcesElement 13002502500.Element 22001501500.0.Element 33002502500.0.0.0.Element 40.4004505000.0.0.Element 50.1501501500.0.0.Element 64004004000.0.rind ( I.O O o 0

We will calculate the Net Present Value of the project to identify the feasibility of this project.…

Question III (7 : Provide a justified policy recommendation considering the case described below: ($ thousands) Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Benefit Sources Element 1 0. 500 525 550 600 650 700 800 1000 Element 2 0. 250 350 500 600 750 800 900 Element 3 0. 100 100 100 100 100 100 100 Element 4 0. 50 50 50 50 50 50 50 50 Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cost Sources Element 1 300 250 250 0. Element 2 0. 200 150 150 0. 0. 0. Element 3 0. 300 250 250 0. Element 4 0. 0. 400 450 500 0. 0. 0. 0. Element 5 0. 150 150 150 0. 0. 0. Element 6 400 400 400 0. 0.

Question III (7 : Provide a justified policy recommendation considering the case described below: ($ thousands) Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Benefit Sources Element 1 0. 500 525 550 600 650 700 800 1000 Element 2 0. 250 350 500 600 750 800 900 Element 3 0. 100 100 100 100 100 100 100 Element 4 0. 50 50 50 50 50 50 50 50 Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cost Sources Element 1 300 250 250 0. Element 2 0. 200 150 150 0. 0. 0. Element 3 0. 300 250 250 0. Element 4 0. 0. 400 450 500 0. 0. 0. 0. Element 5 0. 150 150 150 0. 0. 0. Element 6 400 400 400 0. 0.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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