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Expalin the purpose of Pareto improvement? A public project mnaufactures following individual advantages for stakeholders state in terms of present values when the suiatble social discount of 15% is used:

Individual PV Benefits
Al $8,000
Bev $20,000
Chris $11,000

Present value of total cost of completing and keeping this project equals $36,000

1) Objective of Pareto improvement

2) Is project economically feasible from social point of view?

3) If stakeholders knew that each would be held responsible for 1/3 of project costs, describe would this project be accepted under majority rule? Describe why or why not? Use numbers in answer.

4) In principle, could Bev, major beneficiary, financially cut deals with Al or Chris so as to insure that they would vote for project? Use only numbers provided in project statemetn as starting data. describe how this could be done.

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M932451

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