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The table below shows the net present value of costs and benefits for three proposed policy alternatives: The table below shows the net present value

The table below shows the net present value of costs and benefits for three proposed policy alternatives:

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The table below shows the net present value of costs and benets for three proposed polio; alternatives: m ___- A. {Calculate and report the NW for each policy [vou do not need to show your work]. WhiCh policy should the government choose? B. {Calculate and report the ratios of W benets to W costs for each policv. If the government bases its choice on a costeffectiveness criterion. which policy should it choose? '5. Do the NW and dosteffectiveness criteria lead to the recommendation of the same project? Which rule should the government follow if it wants to maximize social surplus? Using the concept of potential pa reto improvementst thoroughlv explain whyr society will be better off with the rule you chose

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