The Environment Group (EG) is an environmentally conscious organization that buys land with the objective of preserving the natural envirent EG receives private contibusons and takes no assistance from the govemment Fixed costs of operating the organization are $1,000,000 per year Variable costs of purchasing the land (ncluding environmental impact reports, We searches, etc) average $5.000 per hecta budget year, EG expects to receive private contributions totaling $20,000,000 All contributions k cess of costs will be used to purchase land Requirements 1. How many hectares will EG be able to purchase next year? 2. EG is considering participating in a new government program that will provide $2.500 per hectare to subsidize the purchase of environmentally sensitive land #EG participates in this program, it estimates the organization will lose $7,000,000 in contributions from supporters who believe that accepting money from the govemment is not consistent with its mission IfEG does participate in the program, and its forecasts are accurate, how many hectares of land will it be able to purchase? On financial considerations alone, should EG participate in the government program? 3. EG is worried that contributions may decrease by more than the $7,000,000 it has estimated it takes the subsidy By how much can contributions decrease for EG to be able to buy the same amount of land if it takes the government subsidy or rejects (ie. what is the point of indifference between the two options?)