6. The following projects are being considered for a plot of land. Housing Outlet Mall Industrial Park Vacant Lot Benefits $1,200,000 $1,350,000 $1,600,000 $1000 Costs $900,000 $950,000 $1,200,000 $1000 a. Calculate the net benefits and benefit-cost ratios for each project. Which would you recommend for the plot of land? b. Now consider that these projects would take different time periods to be built and start generating benefits, Housing would require one 1 year to generate the benefit in the table; the Industrial Park would require 2 years, the Outlet Mall would require 5 years, and vacant lot would require zero (0) years (i.., immediately, at year zero). Costs would be incurred immediately. If the social discount rate (le consumption discount rate) is 3% which project would you recommend? Why? c. Finally, consider the shadow price of capital. For the industrial park and the outlet mall 40% of the costs displace capital investment. For housing and the vacant lot no costs would displace capital investment. The marginal return on investment is 5%. 1. What is the shadow price of capital (using the simplest expression/equation for it)? II. What are the costs for each project considering the shadow price of capital? II. Which project would you recommend, and why