Question: Suppose a proposal is made to construct a new interstate highway through a plot of undisturbed land. Assume that the costs and benefits associated

Suppose a proposal is made to construct a new interstate highway through a plot of undisturbed land. Assume that the costs and benefits associated with the proposal are as follows: Year 1 2 3 Benefits (S millions) 200 600 800 Costs ($ millions) 500 200 800 If the discount rate is 3 percent, calculate the present value of the net benefits for this project. Based on the results, would you support this project?

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