QUESTION 6A public service official is appraising a project proposal for a project to be done by a domestic firm. The project's present values of benefits andcosts, at market prices, are $3000 and $1550 respectively. If the project goes ahead, tax of $700 will be paid to the country, and pollutioncosting an estimated $250 will occur in the country. Assuming that the firm is a part of the referent group, what are the net present valuesgenerated by:a) The market cost benefit analysis = $%3Db) the private cost-benefit analysis = $%3Dc) The efficiency cost benefit analysis = $%3Dd) the referent group cost benefit analysis = $Provide your answers to two decimal places. Do not include any commas in your answer (i.e. do not include a "," between numbers). Ensureyou show all your working in your spreadsheet.

Given, Benefits cost- $3000 Market Cost- $1550 Tax- $700

Answered: A public service official is appraising…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 9E

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