A community-based public works project costing $55,000 will benefit 5 separate individuals as shown below:
Individual #, Benefit ($), Cost Share ($)
2 $5,000 $4,500
3 $4,000 $5,000
4 $20,000 $18,000
5 $25,000 $25,500
In an Excel spreadsheet, show whether this project is economically feasible. Would a majority approve this project (explain)? Does the project meet Pareto efficiency criterion (explain)? Revise the cost shares to meet Pareto criterion and get the referendum passed by a majority vote.
See excel attached.
1. The overall benefit is $500 which is not a great ...
A sentence explains each and an excel chart shows the initial benefits vs. cost and then the optimized one.