Question

Your county is considering building a public recreation center. Analysts have estimated the present values of the impacts over the expected useful life of the center as listed below. Present Value (millions of dollars) County perspective Global perspective Impact Amount B/C/T/NS Amount B/C/T/NS State Grant to County 5 Construction and maintenance costs 15 Personnel costs 8 Revenue from county residents admission fee 9 Revenue from non- residents admission fee 3 Monetized value of benefits to county residents 16 Monetized value of benefits to non-residents 2 Net benefits NB=_______ NB=_______

a. Assuming county perspective, calculate in the table above the social net benefits of the project. Mark in the comment column either B/C/T/NS, as appropriate.

b. Assuming global perspective, calculate in the table above the social net benefits of the project. Mark in the comment column either B/C/T/NS, as appropriate.

c. Referring to the table above, provide one example of a potential bias a guardian in the county budget office might introduce in the calculation of the net benefits.

Answer 1

Ans-

The first option is correct that is Assuming county perspective, calculate in the table above the social net benefits of the project. Mark in the comment column either B/C/T/NS, as appropriate.