1A. SHSU is considering installing a pedestrian walkway that would cost $64,633. The walkway is...
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1A. SHSU is considering installing a pedestrian walkway that would cost $64,633. The walkway is expected to reduce the risk of fatality from 17.2% to 9.2%. What is the minimum VSL that would make SHSU install the walkway?
1B. Imagine that the government imposes a regulation to improve air quality. However, there will be no benefits of this policy from today to the next nine years. From year ten onward the benefits are calculated at $27,595 every year after that.
What is the present value of the benefits assuming that the discount rate is 83%?
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