# 1.2. Assume you need to evaluate an ecotouristic project. Each year the project requires maintenance costs...

###### Question:

1.2.

Assume you need to evaluate an ecotouristic project. Each year the project requires maintenance costs equal to $200 and you have benefits (income) of$500. Except for the first year when you invest $1,000 and you have zero income. The market interest rate is 5% What is the Net Present Value of this project? YEAR 1 INTEREST RATE 5% COSTS BENEFITS 1000 10 200 500 200 500 500 200 500 200 Assume you have certified coffee plantation project. Each year you would have variable costs equal to$250 and benefits of $500. Except for the first year when the investment is$800 and zero benefits. The market interest rate is 5% What is the Net Present Value of this project? YEAR 1 0 INTEREST RATE 5% COSTS BENEFITS 800 250 500 250 500 250 500 250 500 3 5

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