Benefit-Cost Analysis Chart

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Discuss the limitations of benefit-cost analysis that are of concern to your particular environmental problem using the format below and described in the text book in Chapter 9. Identify method used for estimating Nominal Benefits and Expenditures (costs). Select a realistic annual Inflation Rate and state your assumptions for choosing that rate in order to find Future Value in Real Dollars (FV). How does your analysis change when you use a Discount Rate of 3% instead of 5%?

 

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