Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The US EPA has determined that cleaning up the local watershed so it will meet healthy water standards will cost $300 million. They support their

The US EPA has determined that cleaning up the local watershed so it will meet healthy water standards will cost $300 million. They support their claim for the need to do this project by saying that the economic value of the healthy water to the citizens in the area is $15 million dollars per year in lower health costs, recreation, and quality of life. These benefits are expected to continue for 50 years. The opportunity cost of government money is normally the current rate of treasury bills which is 3%/year. Using Benefit/Cost Analysis determine if this use of government money makes sense. Present value of the costs = $ million (enter as number in whole millions, do not enter $ sign) Annuity factor of the benefits = (enter as number to 4 decimal places) Present Value of the Benefits = $million (millions with 3 decimal places, do not enter $ sign) Benefit/Cost Ratio for this clean-up = (enter as number to 2 decimal places)

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

Development Economics In The Twenty-First Century

Authors: Claudia Sunna, Davide Gualerzi

1st Edition

1317219961, 9781317219965

Students also viewed these Economics questions

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago