Question
Can anyone help ASAP?*** Jefferson Countys Board of Representatives is considering the purchase of a site for a new sanitary landfill. The purchase price for
Can anyone help ASAP?***
Jefferson Countys Board of Representatives is considering the purchase of a site for a new sanitary landfill. The purchase price for the site is $300,000 and preparatory work will cost $75,760. The landfill would be usable for 10 years. The board hired a consultant, who estimated that the new landfill would cost the county $56,000 per year less to operate than the countys current landfill. The current landfill also will last 10 more years. For a landfill project, Jefferson County can borrow money from the federal government at a subsidized rate. The countys hurdle rate is only 4 percent for this project. Compute the net present value of the new landfill.
Use Appendix A for your reference: http://lectures.mhhe.com/connect/0077632451/Appendix%20A.jpg
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a. | Compute the net present value of the new landfill.
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