A foreign firm, which is not part of the Referent Group, proposes to establish a food processing plant in Australia (the Referent Group). With one exception, market prices measure all the efficiency benefits and costs of the project. The exception is the input of fuel which is subject to a 20% indirect tax. The plant is to be fully financed by the owners of the firm. The NPV to the firm is $220 million; NPV of business income taxes amounts to $30 million and the indirect fuel tax revenues have an NPV of $10 million.

Use the above information to work out the values which belong in areas A, B, C and D of the following table.

Classification of Net Benefits Net Benefits accruing to:

Referent Group Non-Referent Group Net Benefits Measured by Market Prices A B Net Benefits not Measured by Market Prices C D