Question: In the early 1980s, planners were examining alternate sites for a new airport to serve London. In their economic analysis, they computed the value of

In the early 1980s, planners were examining alternate sites for a new airport to serve London. In their economic analysis, they computed the value of the structures that would need to be removed from various airport sites. At one airport site, the twelfth-century Norman church of St. Michaels, in the village of Stewkley, would be demolished. The planners used the value of the fire insurance policy on the churcha few thousand pounds sterling-as the value of the structure. An outraged antiquarian wrote to the London Times that an equally plausible computation would be to assume that the original cost of the church (estimated at 100 pounds sterling) be increased at the rate of 10% per year for 800 years. Based on his proposal, what would be the future worth of St. Michaels? (Note: There was great public objection to tearing down the church, and it was spared.)

Step by Step Solution

3.36 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

F 150 FA 4 FP 14 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

7-B-E-M (227).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!