What is the net present value of a regulatory change


Assignment Problem: The government removes tariffs on washing machines and dishwashers from South Korea. Economists estimate that these will create a permanent benefit of $1.5 billion every year going forward. The costs of such a policy will be a loss of income to workers producing such goods currently in America. Suppose this cost is a permanent cost of $100 million every year going forward. What is the net present value of such a regulatory change if we use a discount rate of 10%? How about if the discount rate is 15%?

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Macroeconomics: What is the net present value of a regulatory change
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