n order to create more jobs in the region, the local government gave permission to a foreign investor to build a chemical plant not far from a residential area. Analysts predict that real estate prices will drop by 15%15%. Currently, the total value of real estate is $40$⁢40 million. Calculate the potential external cost for the residents in this area of building the chemical plant. Write the exact answer. Do not round.

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Chapter14: Environmental Economics
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n order to create more jobs in the region, the local government gave permission to a foreign investor to build a chemical plant not far from a residential area. Analysts predict that real estate prices will drop by 15%15%. Currently, the total value of real estate is $40$⁢40 million.

Calculate the potential external cost for the residents in this area of building the chemical plant. Write the exact answer. Do not round.

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