If an analyst predicts that the benefits of a two-year


If an analyst predicts that the benefits of a two-year project would be $100,000 in the middle of the first year and $110,000 in the middle of the second year, the scrap value at the end of the project's life is expected to be $20,000 upon resale, and the discount rate is 5%, how much is the present value of total benefits for the project?

  • $217,968
  • $213,152
  • $230,000
  • $219,827

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Macroeconomics: If an analyst predicts that the benefits of a two-year
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