1 You are trying to decide on the best way to clean up a pond that can be used for recreation and are given two schedules of costs and benefits over the next ten years that area as follows PLAN A PLAN B YEAR Costs Benefits Costs Benefits 30 60 60 300 25 25 25 25 25 25 25 25 25 25 25 100 4 60 60 60 60 60 60 60 7 10 a If you are indifferent between current consumption and future consumption, which plan would you choose Show the calculations you used to come up with your answer b If the discount rate is 3 , which plan would you choose what if the discount rate is 10 Show the calculations you used to come up with your answer (attach extra pages, if necessary)

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1  You are trying to decide on the best way to clean up a pond that can be used for recreation and are given two schedules of costs and benefits over the next ten years that area as follows  PLAN A PLAN B YEAR Costs Benefits Costs Benefits 30 60 60 300 25 25 25 25 25 25 25 25 25 25 25 100 4 60 60 60 60 60 60 60 7 10 a  If you are indifferent between current consumption and future consumption, which plan would you choose  Show the calculations you used to come up with your answer  b  If the discount rate is 3 , which plan would you choose  what if the discount rate is 10   Show the calculations you used to come up with your answer  (attach extra pages, if necessary)

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1. You are trying to decide on the best way to clean up a pond that can be used for recreation and are given two

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