ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The state government has passed a regulation requiring that individual sources install
filters to capture emissions of inhalable particles. The regulation will require the that
installation of the filters start within the upcoming year. The rule is expected to provide
improved respiratory health outcomes for the state's citizens. The benefits and costs
(shown in the table below) of the rule will be reckoned at the end of each of the next 12
years. The government has analyzed the costs and benefits of the regulation at an annual
discount rate of 3%. Determine the annual and total net benefits of the project for each
year of the 12 year period, and the net present value of the completed project, as
determined in the EPA's current cost-benefit evaluation of the project..
1
2
3
4
5
6
7
8
9
10
11
12
Benefits
51,278
45,367
52,876
62,448
53,749
39,723
41,804
46,735
44,286
37,873
51,244
47,836
Costs
43,956
32,556
29,864
39,874
36,843
29287
48,536
52,467
36,118
35,122
39,204
41,344
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Transcribed Image Text:The state government has passed a regulation requiring that individual sources install filters to capture emissions of inhalable particles. The regulation will require the that installation of the filters start within the upcoming year. The rule is expected to provide improved respiratory health outcomes for the state's citizens. The benefits and costs (shown in the table below) of the rule will be reckoned at the end of each of the next 12 years. The government has analyzed the costs and benefits of the regulation at an annual discount rate of 3%. Determine the annual and total net benefits of the project for each year of the 12 year period, and the net present value of the completed project, as determined in the EPA's current cost-benefit evaluation of the project.. 1 2 3 4 5 6 7 8 9 10 11 12 Benefits 51,278 45,367 52,876 62,448 53,749 39,723 41,804 46,735 44,286 37,873 51,244 47,836 Costs 43,956 32,556 29,864 39,874 36,843 29287 48,536 52,467 36,118 35,122 39,204 41,344
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