ECON 310 Lecture 4: Econ 310 ClassNotes, Week 2, Lecture 4, Page 3
Get access
Related textbook solutions
Related Documents
Related Questions
1) The federal government is considering to build a parking lot on what used to be a forest.
These are the benefits and costs of the project:
Years | 0 | 1 | 2 | 3 | 4 |
Costs | |||||
Construction of parking lot | 112 | 134 | |||
Foregone recreation | 125 | 103 | 247 | 163 | 68 |
Benefits | |||||
Parking lot revenue | 59 | 94 | 240 | 245 | |
Employment | 133 | 94 | 282 | 68 |
Using the information above, what is the present value of the parking lot revenue assuming a 1% discount rate?
2) The federal government is considering to build a parking lot on what used to be a forest.
These are the benefits and costs of the project:
Years | 0 | 1 | 2 | 3 | 4 |
Costs | |||||
Construction of parking lot | 138 | 169 | |||
Foregone recreation | 246 | 109 | 251 | 84 | 230 |
Benefits | |||||
Parking lot revenue | 230 | 70 | 74 | 262 | |
Employment | 161 | 78 | 123 | 191 |
Using the information above, what is the present value of the total costs assuming a 27% discount rate?
3) The federal government is considering to build a parking lot on what used to be a forest.
These are the benefits and costs of the project:
Years | 0 | 1 | 2 | 3 | 4 |
Costs | |||||
Construction of parking lot | 99 | 246 | |||
Foregone recreation | 245 | 38 | 147 | 293 | 267 |
Benefits | |||||
Parking lot revenue | 204 | 172 | 262 | 17 | |
Employment | 123 | 30 | 291 | 230 |
Using the information above, what is the present value of the foregone recreation assuming a 26% discount rate?
2) The federal government is considering building a parking lot on what used to be a forest.
These are the benefits and costs of the project:
Years | 0 | 1 | 2 | 3 | 4 |
Costs | Ā | Ā | Ā | Ā | Ā |
Construction of parking lot | 138 | 169 | Ā | Ā | Ā |
Foregone recreation | 246 | 109 | 251 | 84 | 230 |
Benefits | Ā | Ā | Ā | Ā | Ā |
Parking lot revenue | Ā | 230 | 70 | 74 | 262 |
Employment | Ā | 161 | 78 | 123 | 191 |
Using the information above, what is the present value of the total costs assuming a 27% discount rate?