Reference no: EM13220168
the state of glottamora has $100 million remaining in its budget for the current year. one alternative is to give glottamora a one- time tax rebate. alternatively, two proposals have been made for state expenditures of these funds. the first proposed project is to invest in a new power plant, costing $100 million and having an expected useful life of 20 years. projected benefits accruing from this project are as follows:
year 1-5(benefits per yr-- $ millions) $ 0 year
6-20 (benefits per yr-- $ millions) $ 20
the second alternative is to undertake a job retraining program, also costing $ 100 million and generating the following benefits:
years 1-5 (benefits per yr-- $ millions) $ 20
years 6-10 ( benefits per yr--$ millions) $ 14 years
11-20 ( benefits per yr--$millions) $ 4 the state power department argues that a 5 percent discount factor should be used in evaluating the projects, because that is the government's borrowing rate. the human resources department suggests using a 12 percent rate, because that more nearly equals society's true opportunity rate.
c. what rate do you believe to be more appropriate?
Explain how adding a solution of koh to the original sulfide
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What rate do you believe to be more appropriate
: the state of glottamora has $100 million remaining in its budget for the current year. one alternative is to give glottamora a one- time tax rebate. alternatively, two proposals have been made for state expenditures of these funds.
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