1A.3 The town councils finance committee has evaluated data and determined that the present discounted value of

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1A.3 The town council’s finance committee has evaluated data and determined that the present discounted value of the benefits from a proposed dog park comes to $3,250,000.

The total construction cost of the dog park is $3,500,000.

This implies that the dog park should be built. Do you agree with this conclusion? Explain your answer. What impact could a substantial decrease in interest rates have on your answer?

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Principles Of Microeconomics

ISBN: 9789813107342

12th Global Edition

Authors: Karl E. Case, Sharon E. Oster, Ray C. Fair

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