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ACCT 556 Week 7 Homework Problem
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ACCT 556 Week 7 Homework Problem

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ACCT 556

Week 7 Problem

Benefits of Social Programs

 

 

 

A community public works project will cost $55,000 dollars and will benefit 5 different individuals:

 

 

 

 

1.  Is this project economically feasible? Show work in an excel spreadsheet that lists the benefit for each individual.

 

2.  Would this project be approved by a majority at a majority at a referendum?

 

3.  Does the project meet the Pareto efficiency improvement criterion?

 

4.  If possible, revise the cost shares to allow the project to meet the Pareto criterion and to pass a referendum.

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