Note:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative netbenefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, thenthe net present value of the policy would have been__; if it had used a 4% social discount rate, then the net presentvalue of the policy would have beena. lower; lower.O b. higher; lower.O c. higher; higher.d. lower; higher.Clear my choice

A 10% rate in this strategy reduces the negative impact of future losses more than an 8% rate…

Answered: In a recent cost-benefit analysis of a…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 12QE

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Note:-

Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.
Answer completely and accurate answer.
Rest assured, you will receive an upvote if the answer is accurate.

In a recent cost-benefit analysis of a proposed regulation that generated positive net benefits in the present but negative net
benefits in the future, the government used a 8% social discount rate. If it had used an 10% social discount rate instead, then
the net present value of the policy would have been
__; if it had used a 4% social discount rate, then the net present
value of the policy would have been
a. lower; lower.
O b. higher; lower.
O c. higher; higher.
d. lower; higher.
Clear my choice

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