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Identify the following cash flows as a benefit, dis- benefit, or cost.

(a) Loss of income to local businesses because of a new freeway

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(b) Less travel time because of a loop bypass We'll send you a one-tim
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(c) $400,000 annual income to local businesses because of tourism created by a national park
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(d) Cost of fish from a hatchery to stock a lake at the state park a one-time automated text message with a
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(e) Less tire wear because of smoother road surfaces

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(f) Decrease in property values due to the closure of a government research lab

(g) School overcrowding because of a military base expansion

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(h) Revenue to local motels because of an extended weekend holiday
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Step-by-step solution

Step 1 of 2

Cost is the expenses incurred by the government in case of public projects. Benefits are the
gains that are enjoyed by the public and disbenefits is the negative consequences faced by
public when alternative is implemented.

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Step 2 of 2

Classify the following cash flows into benefit, disbenefit and costs as follows:

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