Assignment Three-ABIZ 2390 A01. A. The Minister of Environment and Climate Change is considering different environmental policy changes to meet the Federal Government's climate change ambition of reducing emissions by 40 to 45% below 2005 levels by 2030. A big part of the policies targets reducing Canada's Green House Gas emissions. Suppose researchers at the University of Manitoba estimated the cost and benefit implication of three main projects under the Green House Gas emissions strategy to the economy Manitoba as follows Project A- Net Zero Emissions: Current Cost of $1,000,000 in time period zero (0) and an additional $50, 000 per year after wards. Benefits are estimated to be $0 in time period zero and $150,000 per year afterwards. Project B-Clean Fuel: Current Cost of $1,000,000 in time period zero (0) and an additional $150, 000 per year for the next 5 years. Benefits are estimated to be $0 in time period zero and $150,000 per year afterwards. Project C-Clean Energy target: Current Cost of $500,000 in time period zero (0); an additional $100,000 per year for the next 2 years and then $20,000 per year afterwards. Benefits are estimated to be $100,000 in time period zero and $100,000 per year afterwards. Assume a discount rate of 5% is set for all projects. 1) Determine the Present Value of Cost and Benefits for Each Project. (9marks) II) Calculate the Net Present Value for each project. (3 marks) III) On the basis of your calculation in (II) above, which project should the government choose and why? (2marks) IV) Which project will the government choose if they use a cost-effective strategy instead. (2marks)