Business
Business, 08.10.2019 02:30, rtorres3

Mayor-elect franklin is indifferent about whether to keep a $100,000 property tax revenue surplus or use it to create a tax abatement district on 2nd street (past route 37) in order to attract new business to the city. if the new businesses that locate there are successful, $700,000 in additional tax revenues will be collected by the city. if those new businesses fail, the city coffers will lose the entire $100,000 surplus and no new taxes will be collected. prior to making his decision, franklin determines that tax abatement districts are successful 15% of the time. a. what is mayor-elect franklin’s utility of $100,000?

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Mayor-elect franklin is indifferent about whether to keep a $100,000 property tax revenue surplus or...

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