Answer:
PV= $11,073,515.08
Explanation:
Giving the following information:
Suppose a project will result in an economic benefit of $20 million 25 years from now. The discount rate is 3%, what will be the present value of the benefits of this project.
To calculate the present value, we need to use the following formula:
PV= FV/(1+i)^n
PV= 20,000,000/ (1.03^20)
PV= $11,073,515.08
