11. The public sector is thinking about undertaking one of this two projects, X or Y:...
11. The public sector is thinking about undertaking one of this two projects, X or Y:
|
X |
Y |
|||
|
Units: thousand of dollars |
Benefits |
Cost |
Benefit |
Cost |
|
Year 0 |
100 |
1000 |
||
|
Year 1 |
500 |
|||
|
Year 2 |
500 |
5000 |
||
Calculate the Net Present Value, the Internal Rate of Return and the Benefit/Cost ratio for the two projects using the Social Discount Rate suggested for the federal government for Canada. Which project should the public sector choose according to each of the three methods? Explain your answer.
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11. The public sector is thinking about undertaking one of this
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