Please help me with these question. Thanks! C) Household 1(HH1) has a discount rate...
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Please help me with these question. Thanks!
C) Household 1(HH1) has a discount rate of 5%, and Household 2(HH2) has a discount rate of 10%. Show the following clearly. To make it easy for you, we have provided a grid in which you can write your answers to this question. a. The discount factor for each HH for each time period b. The discounted value of the cost /benefit of each of the 3 options above for each HH for each time period c. The Net Present Value (NPV) of each option for each HH \begin{tabular}{|l|r|r|r|r|r|} \hline Household1 & \multicolumn{5}{|c|}{ Discount rate=5\% } \\ \hline \multicolumn{6}{|c|}{ Time Period } \\ \hline & 0 & 1 & 2 & & \\ \hline & 100 & 110 & 120 & NPV \\ \hline No School & & & & & \\ \hline Discount Factor & & & & & \\ \hline DiscountedValue & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline Primary School & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|c|c|} \hline Household2 & Discount rate=10\% \\ \cline { 1 - 2 } & \multirow{2}{|c|}{ Time Period } & \end{tabular}
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