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years (t = 1, ..., 50 ) and have annual maintenance costs of $0.5 million . At t = 50 there will be a salvage

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years (t = 1, ..., 50 ) and have annual maintenance costs of $0.5 million . At t = 50 there will be a salvage value of $50 million a) Calculate the NPV if r = 0.03 b ) What would the annual benefits have to be in order for the project to be worthwhile ? 5. Liability laws . How do liability laws provide incentive for firms to reach the socially efficient level of emissions ? Explain using a graph . Green goods . Demand for regular car tires is given by P = 200 - 0.0004Q , and supply is given by P = 50 + 0.0002Q . Recycled material tires come on the market

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