Forest owner in a developing country claims that he earns

Assignment Help Business Economics
Reference no: EM1310527

Q. A forest owner in a developing country claims that he earns more m1y with carbon sequestration than with timber production. Conclude the revenues of a carbon sink project based on the following information. The project duration is 30 years. Temporary credits are issued after carbon has been sequestered with an expiring time of 5 years. Carbon sequestration is assumed to be 45 tons CO2 until year 5, additional 75 tons until year 10, 115 tons until year 15, 95 tons until year 20, also 75 tons until year 25, respectively. The price of permanent emission reduction certificates is US$ 25 also the interest rate in ANNEX 1 countries is 2%. Assume that the present value of timber production is US$ 1300 also the interest rate in developing country is 4%. Is the forest owner right?

Reference no: EM1310527

Questions Cloud

Mortality among children remains constant : If total mortality among children remains constant whereas the incidence of that mortality shifted from late childhood to untimely rates of fertility declined.
Alternative market coverage strategies : Describe the different approaches in the undifferentiated marketing, differentiated and concentrated. Then imagine compete with Starbucks, the marketing manager of a new high-end coffee shop.
Effective leader resembling orchestra conductor : The effective leader resembles an orchestra conductor in many ways.
How to do analysis of financial performance using financial : How to do Analysis of Financial performance using financial ratios and Compare and contrast the financial performance of the two companies
Forest owner in a developing country claims that he earns : A forest owner in a developing country claims that he earns more m1y with carbon sequestration than with timber production.
Retirement plan and distributions : Using the general rule calculates Martin's taxable income for 2011 from the retirement plan and distributions
Creating a new domain tree root checkbox : In case, I select the “Create a new domain tree root checkbox” in place of the “Create a new child domain checkbox”, how would configuration of the forest be different?
Why do firms ever ease their credit policies : Since easing credit policy generally lengthens the collection period and worsens the aging schedule, why do firms ever ease their credit policies?
Explain how many coupons would it is rational : If he is an expected utility maximize who tries to maximize the expected value of ln W, where ln W is the natural log of his wealth, Explain how many coupons would it is rational for him to buy.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Japan influenced the provider of toyota automobiles

Explain how has the recent natural disaster in Japan influenced the provider of Toyota automobiles.

  Financial decision-makers

Yet many financial decision-makers at some of the most prominent firms in the world continue to use less desirable measures such as the payback.

  What makes the united states a successful country

The cause and effect on how and why there was a government shut down a month ago.

  Long-run atc curve is u-shaped and intersects the long-run

For every firm in group B , long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 10 and output is 6.

  Most optimal number of space

Illustrate what would be the most optimal number of spaces, and Illustrate what are these corresponding prices.

  Goods and services should be included in fredonia

Examine the following list of goods and services. Which goods and services should be included in Fredonia GDP in 2009, which should be excluded, and why.

  Percentage rate of return

When Betsy goes to make her list for tomorrow she is upset that she didn't get everything done. In a well-written paragraph explain the economics behind her inability.

  Marginal product of capital and labour

Avoid having developed economies regress to a Smoot-Hawley type of isolationism or protectionism to avoid job losses in import-competing sectors.

  Factors determine a wages of a person

Describe the determinants of varying levels of income. What factors determine a wages of a person

  Relevant preference relationships

Suppose the entire civilian labor force is 20,000 people and the number of unemployed is 2,000 people.

  Mining is proposed for a wilderness area

Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.

  Jalapeno pepper market

the changes that would occur to the jalapeno pepper market if suddenly Mexican food became popular, especially spicy Mexican food.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd