The government is considering the use of a policy to increase the adoption of a beneficial management practice (BMP) that will have implications for landowners and society. The costs of the BMP to the landowner is $15,000 right away and $2,000 each subsequent year starting at the end of year

1. The BMP also generates public goods and these public benefits are valued at $3,250 per year starting right away. The public costs of the BMP are estimated to be $250 per year starting right away.

a) Assume the discount rate is 5% and the timeframe for analysis is 25 years. Where would this BMP fall on Pannell's Private-Public Benefits Framework and which policy option would you recommend? (15 points)

b) Now assume the discount rate is 10% and the timeframe stays the same at 20 years. Use Pannell's Private-Public Benefits Framework to recommend a particular policy option. (15 points)