How would you apply the concept of “Ramsey discounting” to a
cost-benefit analysis of policies designed...
How would you apply the concept of “Ramsey discounting” to a
cost-benefit analysis of policies designed to reduce the
intergenerational impacts of climate change?
What is cost-benefit analysis? How would you apply cost-benefit
analysis to your decision to go to college? What are the benefits
and what are the costs of going to college?
b. What happens to your analysis if the interest rate rises?
What happens if the payoff period shrinks? Who is more likely to
find college economically worthwhile: you for your 63-year-old
professor?
c. How would you apply cost-benefit analysis to environmental
policy? What are the costs of pollution? What are...
When discounting future costs and benefits, anyone performing a
benefit-cost analysis will use an interest rate or a discounting
rate, which is shown as i in the following equation:
Explain why the net present value of most projects
rises when i decreases. (1)
Imagine that a project will yield $20M in benefits immediately,
but will result in $200B in damaged at the end of 500 years. Using
a rate of i=0.03 or 3% to discount the future damages, calculate
the...
As a financial leader of your organization, how would you apply
the concept of risk and return in the decision-making process? How
you are going to explain the risk vs. return trade-off during the
shareholders meeting?
As a finance leader of your organization, how would you apply
the concept of risk and return in your daily decision-making
processes? How might you explain the concept of risk vs. return
trade-off during the shareholders meeting? How would a proposed
initiative to diversify current holdings affect the discussion?
Explain.
How did Congress devise the Medicare D drug benefit? Would you
have designed it in that way? What would you have done differently
and why? Should physicians be allowed to purchase their own imaging
equipment? Why or why not?
Perform a Cost and Benefit Analysis for Samsung. Where would you
recommend that the company should focus on cost reduction? Justify
your recommendations with economics.
Perform a Cost and Benefit Analysis for a company of your
choice. Where would you recommend that the company should focus on
cost reduction? Justify your recommendations with economics.