113 review questions copy

Discounting reduces the influence of future costs on

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: l of the above.. 22. Suppose a policy yields the following profile of costs and benefits: YR 1 benefits costs 200 YR 2 150 100 YR 3 200 0 If the PSDR is 3% then the net present value (NPV) of the policy is A. $ - 43.20 B. $37.06 C. $50 D. None of the above. 23. Discounting in CBA penalizes future generations because A. discounting reduces the influence of future costs on NPV. B. discounting reduces the influence of future benefits on NPV. C. discounted costs are not invested to finance future compensation. D. None of the above. 52 24. In the context of distributional impact report, “stakeholders” refers to A. those with mining rights in an area considered for park-designation. B. all individuals affected by a project. C. key groups whose welfare is of particular concern to policy-makers. D. human avengers in some stupid vampire movie. 25. “Sensitivity testing” in CBA A. discounting reduces the influence of future costs on NPV. B. discounting reduces the influence of future benefits on NPV. C. discounted costs are not invested to finance future compensation. D. None of the above. 26. “Simulation” in CBA A. discounting reduces the influence of future costs on NPV. B. discounting reduces the influence of future benefits on NPV. C. discounted costs are not invested to finance future compensation. D. None of the above. 53 Answer Key 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. B A C B B B C C B B C B A A A C B A B C D B D C D D 54...
View Full Document

Ask a homework question - tutors are online