Question III (7 : Provide a justified policy recommendation considering the case described below: ($ thousands) Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Benefit Sources Element 1 0. 500 525 550 600 650 700 800 1000 Element 2 0. 250 350 500 600 750 800 900 Element 3 0. 100 100 100 100 100 100 100 Element 4 0. 50 50 50 50 50 50 50 50 Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cost Sources Element 1 300 250 250 0. Element 2 0. 200 150 150 0. 0. 0. Element 3 0. 300 250 250 0. Element 4 0. 0. 400 450 500 0. 0. 0. 0. Element 5 0. 150 150 150 0. 0. 0. Element 6 400 400 400 0. 0.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Find
 The net present value of the project if discounted at a social discount rate of 7%.

Question III
: Provide a justified policy recommendation considering the case
described below:
($ thousands)
Fiscal Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Benefit Sources
Element 1
500
525
550
600
650
700
800
1000
Element 2
250
350
500
600
750
800
900
Element 3
100
100
100
100
100
100
100
Element 4
0.
50
50
50
50
50
50
50
50
Fiscal Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Cost Sources
Element 1
300
250
250
0.
Element 2
200
150
150
0.
0.
Element 3
300
250
250
0.
0.
0.
0.
Element 4
0.
400
450
500
0.
0.
0.
Element 5
0.
150
150
150
0.
0.
0.
Element 6
400
400
400
0.
0.
rind ( I.
O O o 0
Transcribed Image Text:Question III : Provide a justified policy recommendation considering the case described below: ($ thousands) Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Benefit Sources Element 1 500 525 550 600 650 700 800 1000 Element 2 250 350 500 600 750 800 900 Element 3 100 100 100 100 100 100 100 Element 4 0. 50 50 50 50 50 50 50 50 Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cost Sources Element 1 300 250 250 0. Element 2 200 150 150 0. 0. Element 3 300 250 250 0. 0. 0. 0. Element 4 0. 400 450 500 0. 0. 0. Element 5 0. 150 150 150 0. 0. 0. Element 6 400 400 400 0. 0. rind ( I. O O o 0
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