Reference no: EM132256374
Problem: As a policy analyst, you have measured the costs and benefits of three policy options as follows:
2019 2020 2021 2022 2023
Policy Option A
cost 1,000 1,150 1,200 1,350 1,100
Benefit 900 1,500 1,100 1,500 3,000
Policy Option B
cost 2,200 2,200 1,900 1,200 1,200
Benefit 250 300 2,000 3,700 10,000
Policy Option C
cost 1,000 1,100 1,200 1,250 1,100
Benefit 100 2,500 2,700 1,000 2,000
(1) Calculate net present discounted values (PDV) of the three options. Explain what options are feasible.*The cost in 2019 considered as an immediate cost. For convenience sake, let us assume that the interest rate is 100% and that the scrap value of freed-up resources is zero when the project ended in 2023.