Ask Question
3 August, 18:56

Suppose a project will result in an economic benefit of $20 million dollars 25 years from now. If the discount rate is 3%, what will be the present value of the benefits of this project

+1
Answers (1)
  1. 3 August, 20:10
    0
    PV = $11,073,515.08

    Explanation:

    Giving the following information:

    Suppose a project will result in an economic benefit of $20 million 25 years from now. The discount rate is 3%, what will be the present value of the benefits of this project.

    To calculate the present value, we need to use the following formula:

    PV = FV / (1+i) ^n

    PV = 20,000,000 / (1.03^20)

    PV = $11,073,515.08
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose a project will result in an economic benefit of $20 million dollars 25 years from now. If the discount rate is 3%, what will be the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers