(Spreadsheet recommended) Your county is considering building a public swimming pool. Analysts have...

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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:

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?

David · Accepted Answer

1. We know that social net benefit of the country is determined a positive relationship between social 
benefit and cost. 
Social net benefit of national standing is calculated on the basis of include; 
benefit 
Use value benefit to country residents=16.6 
use value benefits to non-residence=3.1 
cost 
state grants=2.2 
socail net benefit=16.6+3.1-2.2=$17.

(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: The...

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