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A business improvement district is considering the installation of a new lighting system for the district. If the lighting system is installed, all the businesses in the area will benefit, and there will be no way in which business that does not pay for a share of the system can be denied full benefits from the system. The system will cost $4,000 and will benefit the five members of the district as follows:
Individual Benefit
Cost Share
A
1500
800
B
C
700
D
600
E
Please answer the following questions:
a. Is the project economically feasible? Please explain why yes/not.
b. Would any individual business be willing to install the lighting system (and pay for it) by itself? Please explain why yes/not.
c. What the results of a referendum be and why?
d. Does the project as currently structured meet the Pareto criterion? Please explain why yes/not.
e. Is it possible to revise the cost shares to allow the project to meet the Pareto criterion? Please show your calculations (preferably using Excel).
Attachment:- Assignment.rar
Verified Expert
The present proposal in on the decision making on basis of cost and benefits involved. The economic feasibility on the reallocation of resources and then deciding on the project.
1: Excel File that must show all tables, calculations, formulas etc. 2: Word document that must answer all of the questions. Your Online portal help is a perfect place for help. My lecturer was able to comprehend the assignment. The support of teachers that your team provides is a boon for students. It looks like that great work has been done while drafting the paper. Thanks for solving my queries and problems.
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