A provincial government's Department of Tourism has estimated that initial investment into a new permanent recreational park in the province is $2 million, and annual upkeep costs are $100 000. As well, a survey of potential visitors detected a $330 000 annual value of the park via willingness to pay measure. However, an increased inflow of tourists into the area will cause $40 000 per year of extra air pollution. Assuming a social discount rate of 10% per year, calculate (a)the conventional BCR and (b)the modified BCR.

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The Answer of A provincial government's Department of Tourism has estimated that initial investment into a new permanent recreational park in the province is $2 million, and annual upkeep costs are $100 000. As well, a survey of potential visitors detected a $330 000 annual value of the park via willingness to pay measure. However, an increased inflow of tourists into the area will cause $40 000 per year of extra air pollution. Assuming a social discount rate of 10% per year, calculate (a)the conventional BCR and (b)the modified BCR.

A Provincial Government's Department of Tourism Has Estimated That Initial