question archive A developer wants to build houses on a piece of land that is currently under forest cover
Subject:FinancePrice:2.86 Bought15
A developer wants to build houses on a piece of land that is currently under forest cover. The construction cost is 95 million and houses can be sold for 110million in one year after the construction. the development of the land causes the loss of ecosystem service from the forest. The value of the ecosystem service is $100,000 per year from now until forever.
with a discount rate of 10 % what is the present value of the net social benefit of this project assuming that construction starts immediately? please enter your answers in millions
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