Question Details

[answered] 1) The Town of Tucson iis determining whether or not to add


  1. The Town of Tucson is determining whether or not to add bike lanes to several roads around town. To do so, many of the roads would have to be widened, which always results in certain levels of uncertainty in determining the costs of the project. One of the big uncertainties is in the cost of obtaining a right of way to the private land abutting the roads. Assume that there is a 75% chance that the Town will face a large number of lawsuits challenging their taking of the lands. Using the following numbers, evaluate the expected cost of doing the project.
    1) The Town of Tucson iis determining whether or not to add bike lanes to several roads around

     

    town. To do so, many of the roads would have to be widened, which always results in certain

     

    levels of uncertainty in determining the costs of the project. One of the big uncertainties is in

     

    the cost of obtaining a right of way to the private land abutting the roads. Assume that there

     

    is a 75% chance that the Town will face a large number of lawsuits challenging their taking of

     

    the lands. Using the following numbers, evaluate the expected cost of doing the project.

     

    Construction Costs: $15 million

     

    Right of Way Costs Option A (no lawsuits): $4 million

     

    Right of Way Costs Option B (lots of lawsuits): $12 million 2) Several residents of the town would prefer to use the money currently set aside for the bike

     

    lane project above to construct a new soccer complex for the local recreational youth league.

     

    That project is estimated to cost $18 million. Assume that the soccer complex will serve

     

    approximately 10,000 people per year, while roughly 15,000 people will use the bike lanes.

     

    Which project should we do? How did you reach your conclusion? 3) If I wanted to calculate the actual monetary benefits of the soccer people and bike people

     

    respectively, what would be a good way to do it? 4) Pretend that the U.S. government decides to do something proactive about climate change. It

     

    decides that it will invest $100 billion today because it believes it will result in $200 billion of

     

    benefits in 50 years, and additional $500 billion in 100 years. Using a discount rate of 0.04, is

     

    the project a Kaldor-Hicks improving one? (hint: you need to calculate net present value of the

     

    benefits. See formula on slide 6 of the ?Making Decisions? lecture). What if we use a discount

     

    rate of 0.02? Show your work! 5) Who gets to decide what the discount rate is?

     


    Solution details:
    STATUS
    Answered
    QUALITY
    Approved
    ANSWER RATING

    This question was answered on: Sep 18, 2020

    PRICE: $15

    Solution~0001001118.zip (25.37 KB)

    Buy this answer for only: $15

    This attachment is locked

    We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now