The City A is considering building a new public swimming pool. Analysts have estimated the following impacts over the expected useful life of the pool (all in present values):

Impact

Present Value ($ millions)

Funding grant from the provincial government 2.2

Construction and maintenance costs 12.5

Personnel costs 8.2

Revenue from user fees 10.8

Use value to recreational users of the pool 19.7

Scrap value 0.8

When answering the following questions, assume that only residents of A have standing (i.e. assume the municipality of CITY A is the referent group). Also, note that scrap value is a benefit received from reselling resources used during the project after the end of its useful life

Suppose that 16% of users come from outside of the city and that these users are charged a higher price, meaning that they pay 20% of the user fees collected at the pool.

1. i. Calculate and report the size of the use benefits
2. ii. Calculate and report the amount of benefit generated from fee revenues