Problem:
Your city is considering a number of different projects to prevent flooding. You are tasked with assessing the NPV of a green project, which is the alternative to building a dam (a 100-year solution). The initial cost of the green project is $10 million, and will provide $2 million in benefits each year for the next twelve years. Using a discount rate of 5.9%,
Required:
Question 1: What is the equivalent annual net present value (EANPV) of this 12-year project? Explain in detail and provide all calculation and workings out.