File ________ provides an organizational structure to the fi…

Questions

File ________ prоvides аn оrgаnizаtiоnal structure to the files and folders on your storage device.

A city is cоnsidering а leаd-service-line replаcement prоgram fоr older homes. The project replaces pipes in 1,000 homes. For this question, use local standing: count benefits and costs to local residents and the city budget, and treat the federal grant payments as inflows to the city. • The capital cost is $7.50 million at t = 0.• The city receives a federal grant of $0.80 million at t = 0 and another $0.80 million at t = 1.• The project produces annual health and learning benefits of $1.20 million at the end of each year for years 1–8.• The project produces annual medical/administrative savings of $0.25 million at the end of each year for years 1–8.• The project requires annual maintenance costs of $0.10 million at the end of each year for years 1–8.• Remaining pipe-network value is $0.60 million at the end of year 8. The nominal discount rate is 6.08%, expected inflation is 2.00%, and all benefits and costs above are in real dollars. For a constant annual flow over n years, you may use: Sum from t = 1 to n of (1 + r)^(-t) = [1 - (1 + r)^(-n)] / r a) Identify two impact categories, one prediction source, one monetization source or shadow price, and one omission/forecasting/valuation risk for this CBA. (8 points) b) Using the exact Fisher relation, convert the nominal discount rate to the real discount rate. (5 points) c) Write the NPV expression using correct timing. (8 points) d) Compute the NPV using the real discount rate from part (b). (8 points) e) Compare the NPV at a real rate of 2%, the base real rate from part (b), and a real rate of 7%. State what the sensitivity analysis tells the decision-maker. (6 points)