1.Watch the online video on 'Deforestation' athttps://www.nationalgeographic.com/environment/global-warming/deforestation/. Discuss the following questions and determine is deforestation deferred or external cost.

a.How does deforestation affect the environment? Can deforestation cause climate change, desertification, soil erosion, fewer crops, flooding, increased greenhouse gases in the atmosphere?

b.Determine if the impact of mining on the environment has deferred or external cost. Explain your answer.

2.Watch the online video Coal 101: What's Wrong with Coal? - YouTube

https://www.youtube.com/watch?v=9Wv2GKaukZU&t=106s. Discuss the impact of using coal on the environment and answer the following questions:

a.What are advantages and disadvantages of using coal?

b.Determine if the effect of coal on the environment has deferred or external cost. Explain your answer.

3.Determine what will happen to supply or demand and the prices in the following case. Explain your answer

a.The summer season is approaching, and soon consumers will be heading to stores to update their winter wardrobes (winter clothes).

b.A new study shows that having a Starbucks latte every day will result in weight loss and a longer life.

4.Let's assume that a board chairman of aconstructioncompany claims his team to make a comparison between two potential real estate development projects to be constructed. He also reminds them that the company's financial health is getting poor so he has to select one of them. The team should work and list below the potential incomes andcostsof each project.

Step 1

There are 2 projects that will have different number of housing units constructed and different duration.

Step 2

What are the impacts? - Number of housing units will be constructed; How many will be sold? Rental Price of each unit; How many will be sold? ConstructionCost of each unit; Sale price of each unit; Project needs a luxury sales office; Sales personnel cost;Projectduration; Project financing cost.

Step 3

What are the values of impacts?

Project 1 - 500 housing units will be constructed; 400 of them will be sold and 100 of them will be rented for 20 years; Considering all expenses project financing cost is 3,000,000 USD per year; Projectdurationis 3 years.

Project 2 - 400 housing units will be constructed; 350 of them will be sold and 50 of them will be rented for 15 years; Considering all expenses project financing cost is 2,500,000 USD per year; Projectdurationis 2 years.

Step 4

Calculation of net benefit

Cost Calculations

Projectcostcalculations are summarized in below table.

Project Costs Project 1 Project 2 Construction Cost (USD) 50.000.000 36.000.000 Sales Office Cost (USD) 2.000.000 3.000.000 Sales Personnel Cost (USD) 900.000 500.000 Financing Cost (USD) 9.000.000 5.000.000 TOTAL 61.900.000 44.500.000Project Benefits Project 1 Project 2 Income From Sales (USD) 48.000.000 47.250.000 Income From Sales After Rental Period (USD) 7.000.000 4.000.000 Income From Rentals (USD) 8.000.000 3.375.000 TOTAL 63.000.000 54.625.000Comparison Project 1 Project 2 Benefits 63.000.000 54.625.000 Cost 61.900.000 44.500.000 Profit 1.100.000 10.125.000