Question: A county is considering building a composting facility to reduce food waste. Analysts have estimated the present values of the following over the expected useful

A county is considering building a composting facility to reduce food waste. Analysts have estimated the present values of the following over the expected useful life of the facility:

Monetized Effect Social CBA Social CBA Guardian
Category (million dollars) National Standing County Standing County Standing
Fedral Grant 2.0
Construction Costs 2.5
Food waste collection containers and personnel (facility operators, food waste/ garbage collectors, 3.0
Collection fees from county residents 6.5
Facility operation and maintenance costs 2.2
Use value to county residents 10
Use value to non-residents 3.1
Salvage/ Scrap value 0.3
Net Benefits (million dollars)

The federal grant is only available for this purpose. Construction, maintenance, and personnel costs will be done by a firm in the county.

a. (5 points) Assuming national-level standing, classify each item as benefit or cost and then calculate the social net benefits of the project.

b. (5 points) Assuming county-level standing, classify each item as benefit or cost and then calculate the social net benefits of the project.

c. (5 points) Assuming county-level guardian standing, classify each item as benefit or cost and then calculate the social net benefits of the project.

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