E2 if you give me new answer i will give you likeAn NGO is considering building a school for children in a community with 200 children. Assume thatcurrently, only 83 children attend school. Analysts have estimated that the new school will doubleschool attendance to 166 children. Also, assume that the present social value of each child attendingschool is $2,000. If the project requires an initial investment of S50k plus an additional S15k per yearafter the first year until it is completed, and if it takes 4 years to complete, what is its SNPV at a PDRof 7%? Assume that the construction imposes a negative externally of S7k a year due to noise andpollution. Also assume that the benefits start in the 5th yearCalculate the SIRR for the above project.Explain, in no more than 5 sentences, why a child attending school has social value

Social value =2000 Total Additional social value with construction of new school = 83 x 2000 =…

Answered: - only 83 chil tendance to S2,000. If…

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- only 83 chil tendance to S2,000. If th firct

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 4P

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Question

if you give me new answer i will give you like
An NGO is considering building a school for children in a community with 200 children. Assume that
currently, only 83 children attend school. Analysts have estimated that the new school will double
school attendance to 166 children. Also, assume that the present social value of each child attending
school is $2,000. If the project requires an initial investment of S50k plus an additional S15k per year
after the first year until it is completed, and if it takes 4 years to complete, what is its SNPV at a PDR
of 7%? Assume that the construction imposes a negative externally of S7k a year due to noise and
pollution. Also assume that the benefits start in the 5th year
Calculate the SIRR for the above project.
Explain, in no more than 5 sentences, why a child attending school has social value

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