I don't understand how you got the values $50,909 and $120,952 after the discounts. Because, 10% discount applied to $56,000 becomes $50,400 and 5% discount applied to $127,000 becomes $120,650.
@@econdoctor in the calculation for a discounted NPB and NSB,why are we not taking into account the time factor (in this sense, year). Like (56,000)/(1+10)^2 to be 46,280.99?? Same with 127,000
Thank You.. this is very helpul and clearly explained..
Great Insights, thank you so much
You are such a life saver
Thank you so much for this. I wish I could send a question to you. Thank you so much
Or connect with you on Linkedin. I am just starting out as a project manager.
simplified! thanks
This is very helpful, thanks
Thank you!
I don't understand how you got the values $50,909 and $120,952 after the discounts. Because, 10% discount applied to $56,000 becomes $50,400 and 5% discount applied to $127,000 becomes $120,650.
$50,909 = $56,000 /1 + 10%) and $120,650 = $127,000 / (1 + 5%)
@@econdoctoris the 1 on the denominator, constant over time? or would it vary depending on the year?
@@christianjayvillanueva2335 Constant, it's not a parameter / variable.
@@econdoctor in the calculation for a discounted NPB and NSB,why are we not taking into account the time factor (in this sense, year). Like (56,000)/(1+10)^2 to be 46,280.99??
Same with 127,000
How Noise, Traffic jams and lower crime rate have Monetary value.. will pay for those cost and receive cash for real?
how did you compute the net social value? how did you get the -53,400 for year 1 and 127,000 for year 2
My conclussion was that those values are the result of assuming that every benefit or cost will be undertaken by the public entity.
thanks!!!
Can I ignore the intangible costs-benefits when I apply cost-benefit analysis to my project?
You can, but you shouldn't.
@@econdoctor But these intangible benefits doesn’t generate any real cash flow to my business.
Is it always 10% discount rate?
I guess you are a French😊
thank u