The table sets out the expected costs and benefits of four government projects. The government can afford just one project. Which project should the government select?
- AProject A (private benefits $40m, external benefits $200m, private costs $60m, external costs $70m)
- BProject B (private benefits $60m, external benefits $160m, private costs $100m, external costs $20m)
- CProject C (private benefits $100m, external benefits $210m, private costs $100m, external costs $120m)
- DProject D (private benefits $150m, external benefits $90m, private costs $120m, external costs $140m)