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9 profile-image Consider a project that would affect two groups in society: Group A and Group B. Undertaking the project would impose a cost of
9 profile-image Consider a project that would affect two groups in society: Group A and Group B. Undertaking the project would impose a cost of $4 million on Group A and a cost of $6 million to Group B. The project would yield benefits of $10 million to Group A but benefits of only $2 million to Group B. Assume that these costs and benefits are already expressed in present values. [2 points] Calculate the net benefit of the project to each of the two groups. [1 point] Which group is a "winner" from this project? Which group is a "loser" from this project? [1.5 points] Calculate the net social benefits of the project. [1 point] Based on a CBA, should this project be undertaken? [2 points] What does your answer to Part (d) say about the policy's potential for generating a Pareto improvement for Groups A and B
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