When Evaluating Proposals for Building a New Municipal Sewage Treatment

question 29

Multiple Choice

When evaluating proposals for building a new municipal sewage treatment plant, a benefit-cost analysis

• A) does not have to include the cost of the land if it is donated.
• B) must include the value of the land even if it is donated.
• C) may or may not include the cost of the land if it is donated, depending on whether the donor is a private or public entity.
• D) benefit-cost studies are not appropriate for municipal projects.