MICROECONOMICS
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ISBN: 9780134519494
Author: Acemoglu
Publisher: PEARSON
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Chapter 12, Problem 5P
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Please answer the following question stepwise and briefly
For the construction of the first phase of the Kribi deep-water port, the Cameroonian government received a loan of 193 billion FCFA from the Export-Import Bank of China at an annual interest rate of 3%. Annual revenues are estimated at 20 billion FCFA for the first 15 years. Some port freight handling equipment will be replaced every 5 years at a cost of 1 billion FCFA.
(a) Calculate the NPV (VAN) at 5% and at 6% discount.
(b) Determine the IRR (TIR) (as a percentage with two decimal places).
(c) Is the project economically viable for the country? Justify your answer.
Formula : VAN = ∑Tt=0 (Bt - Ct)/(1+r)t
Please answer the following questions step wise explaining detailly each step please
During a critical 24-month period, the average monthly inflows to a reservoir and the average water demand are
given in Table. Use these data to
estimate the minimum required
storage volume of the reservoir using
Average Average
Average Average
inflow demand
inflow demand
Average Average
inflow demand
Month (m³/s) (m³/s) Month (m³/s) (m³/s) Month (m³/s)
(m³/s)
both the analytical method and the
sequent peak method.
1
850
1000
9
1550
1300
17
1350
1400
2
1130
1100
10
1600
1200
18
1270
1400
3
1310
1200
11
1370
1100
19
1120
1400
Durant une période critique de 24
mois, les apports mensuels moyens
d'un réservoir et la demande moyenne
en eau sont indiqués dans le tableau.
Ces données permettent d'estimer le
volume de stockage minimal requis du
Note: "Month "1" is January.
réservoir, à l'aide de la méthode analytique et de la méthode des pics séquentiels.
4
1000
1300
12
1210
1000
20
1230
1400
5
1170
1400
13
940
1000
21
6
1260
1400
14
820
1100
7
880
1400
15
1040
1200
8
930
1400
16
1290
1300…
Chapter 12 Solutions
MICROECONOMICS
Chapter 12, Problem 1QChapter 12, Problem 2QChapter 12, Problem 3QChapter 12, Problem 4QChapter 12, Problem 5QChapter 12, Problem 6QChapter 12, Problem 7QChapter 12, Problem 8QChapter 12, Problem 9QChapter 12, Problem 10Q
Chapter 12, Problem 11QChapter 12, Problem 12QChapter 12, Problem 13QChapter 12, Problem 1PChapter 12, Problem 2PChapter 12, Problem 3PChapter 12, Problem 4PChapter 12, Problem 5PChapter 12, Problem 6PChapter 12, Problem 7PChapter 12, Problem 8PChapter 12, Problem 9PChapter 12, Problem 10PChapter 12, Problem 11PChapter 12, Problem 12P
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