Calculate the present value of benefits minus costs

Assignment Help Corporate Finance

Reference no: EM132211656

Question - A cost-benefit analysis of a new irrigation project indicates that the net benefits (B C) of the project in each of the first four years will be $2 million. Thereafter, the project will yield positive net benefits of $750,000 for the next 20 years. Calculate the present value of benefits minus costs when the social rate of discount is 10 percent. You can use spreadsheet software to do this calculation. Does the program merit approval? How would the present value of the net benefits change if the social rate of discount were 15 percent?

Reference no: EM132211656

Questions Cloud

Some projects that are currently underway in community : Identify some projects that are currently underway in community. identify major activities, and draw a network diagram using Activity- on -Node (AON) Approach

Prepare a detailed management report : Prepare a detailed management report addressing each of the concerns facing TexMex Foods. Include in your report supporting graphs and charts

Significant achievement of the industrial revolution : What was one significant achievement of the industrial revolution? And how this achievement affected the transportation system of the time?

Write a program to reverse a word entered by the user : Write a program the uses stacks and/or queues from c++ standard template library(STL) to reverse a word entered by the user.

Calculate the present value of benefits minus costs : Calculate the present value of benefits minus costs when the social rate of discount is 10 percent. You can use spreadsheet software to do this calculation

Approaches to winning sustainable competitive advantage : Which of the following is not included in proven approaches to winning a sustainable competitive advantage?

Hotel goals based strategic planning process : Create your own hospitality agency, for instance, hotel goals based strategic planning process focuses first on analysis which is conducted via SWOT analysis

Business ethics and corporate governance : A secretary who has worked for your corporation for fifteen years is involved in a car accident in which she permanently loses the use of her right hand.

Calculating NPV and IRRA : Question - Calculating NPV and IRRA - A project that provides annual cash flows of $2,145 for eight years costs $8,450 today

User Account

All Pages