PADP 6930 Study Guide - Midterm Guide: Subprime Mortgage Crisis, Property Insurance, Net Present Value

• School: University of Georgia
• Department: Public Administration and Policy
• Course: PADP 6930
• Professor: Moldogaziev

Document Summary

Part i: multiple-choice questions based on problem solving, definitions, and conceptual relationships. Poorland county is proposing to build a golf course. Questions 3 through 12 are based on the following information: for local residents" use. It will require million in upfront capital costs and million in maintenance costs at the end of the first year. The county can make million in fees in year 1, and privatize the golf course in year 2 for million. Assume no transaction costs exist in this project, unless otherwise prompted. The expected social rate" of return is 3. 5% Earnings cash flows y1 = mil; y2 = mil. . 80 (3) based on irr, npv, and bcr, the project must be financed: true, false. 0 = [ (0-12) / (1+r)^0 ] + [ (1. 93-4. 83) / (1+r)^1 ] + [ (15. 87 - 0) / (1+r)^2 ] Padp 6930 public finance administration solve . irr = 7. 178%