You are a policymaker and want to calculate the present value of the net benefit of the following project proposal. Proposal: An HIV treatment campaign that will cost the city $15 million in year 1, but will save 10 lives each year for years 1, 2, and 3. Suppose each life is valued at $3 million and the discount rate is 5%. What is the present value of the stream of net benefits over the following 3 years? (Tip: discount the benefits and costs starting with year 1.)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here