When a project entails significant social costs, the private net present valuethe value of the project to its sponsorexceeds the true (societal) net present value, namely the combined value to all the affected constituencies inclusive of the social costs.

• Should the externalities be taken into account when evaluating such a project?
• In your response, identify stakeholders roles, legalities, guidelines, policies or processes that might be considered/required to ensure a sponsors compliance or curb undesirable behavior?

(See Finnerty Chapter 6)

initial post should be brief and approximately 400-500 words.