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BenefitCost Analysis Chart
Discuss the limitations of benefitcost 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%?
Year

Nominal Benefit

Future Value in Real Dollars (FV)

Discount
factor 5%

Present
value
Year 0

Year 0

X00,000




Year 1

X00,000




Year 2

X00,000




Year 3

X00,000




Year 4

X00,000




Year 5

X00,000




SUM
= PV =
Year

Nominal Expenditure

Future Value
in Real Dollars (FV)

Discount
factor 5%

Present
value
Year 0

Year 0





Year 1





Year 2





Year 3





Year 4





Year 5





SUM
= PV =