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(Spreadsheet recommended) Your county is considering building a public swimming pool.
Analysts have estimated the present values of the following effects over the expected useful life of the pool: PV (million dollars) State grant: 2.2 Construction and maintenance costs: 12.5 Personnel costs: 8.2 Revenue from county residents: 8.6 Revenue from non residents: 2.2 Use value benefit to county residents: 16.6 Use value benefit to non residents: 3.1 Scrap value: 0.8 The state grant is only available for this purpose. Also, the construction and maintenance will have to be done by an out-of-county firm.
a. Assuming national-level standing, what are the social net benefits of the project?
b. Assuming county-level standing, what are the social net benefits of the project?
c. How would a guardian in the county budget office calculate net benefits?
d. How would a spender in the county recreation department calculate benefits?
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