Question 4 a. Explain the key steps in conducting a cost-benefit analysis (CBA). The environmental protection agency of a county would like to preserve a piece of land wilderness area. The current owner has offered to lease the land to the county for as ears in return for a lump-sum payment of $1.1 million, which would be paid at the 25 y beginning of the 25-year period. The agency has estimated that the land would enerate $110,000 per year in benefits to hunters, bird watchers, and hikers. Assume that the lease price represents the social opportunity cost of the land and that the appropriate real discount rate is 6 percent. apa suming that the yearly benefits, which are measured in real dollars, accrue at the end of each of the 25 years, calculate the net benefits of leasing the land. Some analysts in the agency argue that the annual real benefits are likel ate of 2 percent per year due to increasing population and county inco Iculate the net benefits assuming that they are correct. Reca