you have learned how a corporation, or private company will analyze an invstment that has a cash outflow in year zero and cash infow in years 1 through X. These costs and benefits are tangible in nature, meaning that there is a direct price that can be assocaited with the costs and benefits. Governmental agencies have to do the same thing when they are considering an investment. However, governmental agencies will have to consider the tangible costs and benefits as well the intangible costs an benefits costs. For instance, let say the city council is considereing constructing a 20 mile long bike trial through their city. In your post discuss some of the things they need to consider. What would the tangible costs be (cost of concrete cost of the land, cost of labor, cost of renting the machinery). What would be the intangible benefits (the benefits that don’t have an exact dollar price attached to them and how would you measure these benefits – the benefits could be, for example, cleaner air for the urban area, a more healthy population, etc.) and what would be the intangible costs be (ie, what does the city forgo, such as giving up area for another strip mall, or more businesses, etc,). How would you measure these costs?
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