Long Answer 1 Suppose Habitat for Humanity of the Mississipp…
Long Answer 1 Suppose Habitat for Humanity of the Mississippi Gulf Coast (HfH) has recently received a substantial donation and is deciding whether or not to spend the money on performing extensive residential hurricane wind retrofits in a particular neighborhood. The retrofits would cost $1.3 million (in year 0) but would prevent an average of $320,000 per year in hurricane-related damages for 5 years after they are installed. Fill out the table below on your scratch paper. You will be asked to calculate Present Value of Net Benefits (PVNB) for a discount rate of 7% and a discount rate of 8%. t Benefits Costs Net Benefits Present Value of Net Benefits (r=7%) Prevent Value of Net Benefits (r=8%) 0 1 2 3 4 5