Suppose that the interest rate is 10%, for a public project that generates the following stream of

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Suppose that the interest rate is 10%, for a public project that generates the following stream of annual net benefits: $12,000, $14,000, $10,000. $13,000, $22,000 and $30,000. Calculate the PDV of this net income. Then, using the same stream of net benefits, calculate the PDV using 4%. Draw some policy conclusions and justify the eventual choice of discount rate for that public project. Does multiplying all net benefits by 10 make any difference to your conclusions?

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