The Belizean government has determined that yearly benefits

jagguarpaw January 19, 2017 0 Comments

Question: Let’s say that the Belizean government has deter…

Let’s say that the Belizean government has determined that yearly benefits of creating a 20 nautical mile reserve are $100,000 due to increased tourism (~200,000 Belizean Dollars) and the costs are $200,000 in year 0 and $80,000 each subsequent year (enforcement costs and lost revenues for local fishers). Using a discount rate of 4%, would we implement the project if we considered 5 years of benefits and costs? Show your work for full credit?