2 Consider the following two projects. Both have costs of $5,000 in Year 1. Project 1 pro...

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2 Consider the following two projects. Both have costs of $5,000 in Year 1. Project 1 pro vides benefi ts of $2,000 in each of the fi rst four years only. The second provides benefi ts of $2,000 for each of Years 6 to 10 only. Compute the net benefi ts using a discount rate of 6 percent. Repeat using a discount rate of 12 percent. What can you conclude from this exercise?

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The Economics Of Health And Health Care

ISBN: 9781138208049

8th Edition

Authors: Sherman Folland,‎ Allen C. Goodman,‎ Miron Stano

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