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h today: – $376,889 if r=.05 – $148,644 if r=.10 Private Sector Project Evaluation 私人部門的項(xiàng)目評(píng)估 ? Suppose there are two projects, X and Y. ? Each entails certain benefits and costs, denoted as BX, CX, BY, and CY. ? Need to ask: – Is the project admissible(可行) ? – Is the project preferable(最好) ? Private Sector Project Evaluation ? Admissible: Are the benefits greater than the costs? ? Preferable: Are the benefits the highest? ? Most projects involve a stream of benefits and costs over time. Private Sector Project Evaluation ? Define: Bti ?Cti ?Benefits from project i at time t Costs from project i at time t ? Then the present value of project i is: ? ? ? ?? ? ? ?? ?PV B CB CrB Cri i ii iTiTiT? ? ???? ???0 01 11 1. . .Private Sector Project Evaluation ? The present value criteria (現(xiàn)值標(biāo)準(zhǔn))for project evaluation are that: – A project is admissible only if its present value is positive