NPV) test, and should these countries create the Green Wall (remember to total the annual NPV across all years 0-10)? Su Green Wall Benefits/Costs Costs thousands of $) Initial planting costs Recurring maintenance and water costs Years 0 1 2 3 4 5 6 7 8 9 10 2000 000 oooooo 이 0150150150150150 150 150 150 150 150
NPV) test, and should these countries create the Green Wall (remember to total the annual NPV across all years 0-10)? Su Green Wall Benefits/Costs Costs thousands of $) Initial planting costs Recurring maintenance and water costs Years 0 1 2 3 4 5 6 7 8 9 10 2000 000 oooooo 이 0150150150150150 150 150 150 150 150
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Assume the numbers below are representative of the 11 countries. Using the table below for a 0% and 7% discount rate, does the Green Wall pass the total net present value
(NPV) test, and should these countries create the Green Wall (remember to total the annual NPV across all years 0-10)? Suggestions: I do recommend using excel.
Green Wall Benefits/Costs
Years
1 2 3 4 5 6
7
8 9 10
Costs
(thousands
of $)
Initial
2000 o o o o o o 0 0 o o
planting
costs
Recurring
maintenance
and
0150150150150150 150 150 150 150 150
water
costs
Benefits
Improved
agriculture
yields
O 50 50 75 75 75 100 100 100 100 150
Job
ono0100100150150200200300300400
creation
Cultural
o o 25 50 75100 150200300400500
values
NPV @
0%
NPV @
7%
Select one:
No, don't make the wall at 0% discount rate; Yes, make the wall at 7% discount rate.
O b. No, don't make the wall at both the 0% and 7% discount rate.
Oc. Yes, make the wall for both levels of the discount rate.
O d. Yes, make the wall at 0% discount rate; No, don't make the wall at 7% discount rate.
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