[29 marks] A Queensland firm sets up a manufacturing plant at a Queensland town near the Queensland-NSW border. The project needs some specialized technical expertise and thus the firm engages the help of a foreign organization at a fee of $2000. It hires a project manager from NSW at a cost $1500, whose opportunity cost is $700. It purchases materials worth $3000 exclusive of a 10% indirect Goods & Service Tax (distortionary, materials are in addition to current supply), which is paid to the federal government, and hires otherwise unemployed local labor at a wage of $1000. Depreciation on the firm's capital equipment is $95 and it also pays $55 interest on an unrelated preexisting debt to a Victoria based bank. The project generates revenue worth $9000, net employment benefits of $600 for the labor, a positive externality worth $300 by reigniting the town's economy, and causes pollution affecting Queensland and NSW residents worth $500 and $350 respectively. The firm pays a company tax of $200 to the Queensland government and shares the remaining profits on an 80:20 basis with the foreign organization (keeping the higher share for itself). Assuming there are no other benefits and costs, all values are present values, and Queensland entities as the referent group, answer the following:

Calculate the: b) Market benefit-cost analysis (2 marks)

c) Private benefit-cost analysis (2 marks)

d) Efficiency benefit-cost analysis (2 marks)

e) Referent Group benefit-cost analysis by:

i)Aggregate (residual method) (2 marks)

ii)Disaggregate (4 marks)