2- [16 marks] The city council pays $42,000 to an interstate firm to construct a ba rbeqLie area with a kid's playground on otherwise vacant land. The firm hires 522,000 of unskilled labour at the minimum wage. The cost of materials used {which are in addition to current supply] to construct the facility was $4,000, including 5800 in federal saies tax [a distortionary tax}. Depreciation on the firm's capital equipment was $1,200 and interest on preexisting debt during construction was $1,500. The firm paid an extra $2,000 in federal company tax as a result of undertaking the project. The council is to charge a fee to users of the barbecue area, with a present value of 520,000. A survey to residents indicates that nonmarket value of the facility has a positive benet to families with a present value of $30,000 however with pollution effects of $2,000. In the absence of the barbecue project the iabour employed to construct the facility would otherwise be unemployed and would receive from the federal government unemployment benefits totalling $2,000. The value of the nonmarket activity of the labour is estimated to be 20% of the market wage. All stakeholders except the interstate firm are part of the Referent Group. i. Calculate the aggregate net benet of the project according to: a. The Market CBA [2 marks] b. The Private CBA [2 marks} c. The Efficiency CBA [2 marks] The Referent Group CBA, using the residual method [2 marks] ii. Calculate the distribution of the Referent Group net benefits among the following stakeholders: a. Consumers [2 marks] b-. Labor [2 marks] c. The council [2 marks] 5!. The federal government [2 marks]