skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

The state of Glottomora has $100 million remaining in its budget for the current year. One alternative is to give Glottomorans a one-time tax rebate. Alternatively, two proposals have been made for state expenditures of these funds.
The first proposed project is to invest in a new power plant, costing $100 million and having an expected useful life of 20 years. Projected benefits accruing from this project are as follows:
Years 1-5 = $0 benefits per year
Years 6-20 = $20million benefits per year
The second alternative is to undertake a job retraining program, also costing $100 million and generating the following benefits:
Years 1-5 = $20 million
Years 6-10 = $14 million
Years 11-20 = $4 million
The state Power Department argues that a 5% discount factor should be used in evaluating the projects, because that is the government’s borrowing rate. The HR department suggests using a 12% rate, because that more nearly equals society’s true opportunity rate.

Question: Make a choice between the projects and the tax-refund alternative. Why did you choose the alternative you did?

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®