Answer and Explanation:
The computation of the net present value is presented in the attachment below:
For project A, the net present value is $91,771.53 and for project B, the net present value is $79,390.69
It is computed after considering the discounting factor that comes from
= 1 ÷ (1 + discount rate)^number of years
for year 1, it is
= 1 ÷ (1 + 0.06)^1
The same applied for the remaining years
Answer: When economists say that a good is no -rival in consumption, More than one person can enjoy the good at the same time
A good is excludable if someone can be prevented from using it. A good is rival in consumption if one person's use reduces others' ability to use the same unit of the good. Markets work best for private goods, which are excludable and rival in consumption. Markets do not work well for other types of goods.
