Question
1.1.You are given the following table of projects, their present values of costs and benefits in millions of Euros Project Cost Benefit NPV BCR A
1.1.You are given the following table of projects, their present values of costs and benefits in millions of Euros
Project | Cost | Benefit | NPV | BCR |
A | 50 | 60 | ||
B | 40 | 60 | ||
C | 20 | 26 | ||
D | 15 | 30 | ||
E | 5 | 10 |
Complete the missing values and decide on the optimal combination of projects (without repetition of a single project) in the following cases: a. a limit of 3 projects b. a budget of 50m
1.2.Provide a list of stakeholders and how they are affected (positively and negatively) by a project of a nuclear factory.
1.3. Please comment if you agree and why on the following statement: A CBA project with inflows (benefits) expected in the far future, will lose value on a higher interest rate, while it will gain value if it expects losses in the far future.
1.4. Provide a short example of a private project with externalities in the community, and what would be the difference between a financial and an economic analysis
1.5. Calculate the IRR of the following project:
Flows/year | 0 | 1 | 2 | 3 |
+200 | +200 | +1000 | +1800 | |
-200 | -400 | -1000 |
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