Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. The Komodo Dragon is the largest species of lizard on earth. It is found in a small group of Indonesian Islands and grows to

image text in transcribed
image text in transcribed
4. The Komodo Dragon is the largest species of lizard on earth. It is found in a small group of Indonesian Islands and grows to a maximum length of 9.8 ft. They are aggressive, venomous and have septic pathogens in their saliva, which cause bits to become fatal within days. Given the nature of these beasts, they have become a major tourist attraction. Walpole et. al. Conservation Biology (2000) produce estimates of willingness to pay for Komodo National Park visits at $554,864.70 in 2011. Annual operating expenses in 2011 dollars were $344,616.82. Assume the park needs major fence repairs which will occur in year 0 (2011) while the park remains operational which requires loan financing with $50,000 in repayment, annually for 2011-2013. Assume a social discount rate of 7 percent, and an inflation rate of 2.9 percent. Find the following for the time period of 2011 through 2013: (a) NVB (1 points) (b) NVC (1 points) (c) Present value of net benefits (1 point) 4. The Komodo Dragon is the largest species of lizard on earth. It is found in a small group of Indonesian Islands and grows to a maximum length of 9.8 ft. They are aggressive, venomous and have septic pathogens in their saliva, which cause bits to become fatal within days. Given the nature of these beasts, they have become a major tourist attraction. Walpole et. al. Conservation Biology (2000) produce estimates of willingness to pay for Komodo National Park visits at $554,864.70 in 2011. Annual operating expenses in 2011 dollars were $344,616.82. Assume the park needs major fence repairs which will occur in year 0 (2011) while the park remains operational which requires loan financing with $50,000 in repayment, annually for 2011-2013. Assume a social discount rate of 7 percent, and an inflation rate of 2.9 percent. Find the following for the time period of 2011 through 2013: (a) NVB (1 points) (b) NVC (1 points) (c) Present value of net benefits (1 point)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Investments And Management An Introduction

Authors: Herbert B. Mayo

8th Edition

0324178174, 9780324178173

More Books

Students also viewed these Finance questions