1. Answer Exercise 1.3 (Chapter 1- Exercise 3). A spreadsheet that you can use for Exercise 1.3 is available on CANVAS under Files. 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 nonresidents: 2.2

Use value of benefit to county residents: 16.6

Use value benefit to nonresidents: 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.

1. Assuming national-level standing, what are the social net benefits of the project?
2. Assuming county-level standing, what are the social benefits of the project?
3. How would a guardian in the county budget office calculate net benefits?
4. How would a spender in the county recreation department calculate net benefits?