If a public project that costs $100,000 in year 0 generates a benefit of $55,000 in year 1 and a benefit of $60,500 in year 2, should it be built? Explain why the answer depends on a particular number, and why economists might disagree about the project depending on the number they choose.

Answer rating: 100% (QA)

From the accounting approach the project should be accepted since it yields a positive net benefit i... View the full answer