Cause problems in free market exchange

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1. Given what we are seeing with regards to the healthcare labor market the distribution of assets to under-served populations, what sort of policy interventions is needed? Or, do regulations and policy changes just cause problems in a free market exchange? What do you think?

 

2. Your group of rural cabin owners is considering a small renewable energy project that would average 100 kW of output year-round, with an expected lifetime of 20 years. The project has a capital cost of $280,000, and a salvage value of $30,000. The community currently pays $0.05/kWh for electricity. It uses a discount rate of 7% to assess these types of investments. What is the NPV for the project? Is it viable? (Note: assume no escalation of electricity prices.)

Reference no: EM13847502

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