ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- 1. Suppose that a polluting activity has marginal damage and marginal abatement costs given by MD=2E and MAC = 210 - 3E, respectively. Suppose that the polluter(s) are held liable for damages. (a) What level of emissions will be chosen by polluters. (b) Compute the amount of damages (compensation) that will be paid by polluters and the total of all costs paid by polluters. (c) Compute the social gains from instituting legal liability, relative to the no-abatement outcome.arrow_forward15-23 For the following projects what is the opportunity cost of capital if the budget is (a) $60,000, and (b) $120,000? If Project 4 has an external environmental cost of S1000 annually that is included, (c) how does this change the answer to (a)? (d) How does this change the answer to (b)? G Project Life (years) First Cost Annual Benefit Salvage Value 1 20 $20,000 $4000 2 20 20,000 3200 $20,000 30 20,000 3300 10,000 15 20,000 4500 5 25 20,000 4500 -20,000 6. 10 20,000 5800 7 15 20,000 4000 10,000 4.arrow_forwardPublic investment projects should provide benefits for the public's greater good that exceed the_ O present worth O annual worth O costs O payback period of providing those benefits.arrow_forward
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