Excessive and improper use of antibiotics is contributing to the resistance of many diseases to existing antibiotics. Consider a regulatory program in Canada that would monitor antibiotic prescription by physicians. Analysts estimate the direct costs of enforcement to be $50 million, the time costs to doctors and health professionals to be $250 million, and convenience costs to patients to be $190 million annually. The annual benefits of the program are estimated to be $360 million in avoided resistance costs in Canada, $80 million in health benefits from better compliance with prescription, and $300 million in avoided resistance costs in the rest of the world.

With the information above and any additional information you can find and your own reasonable assumptions, undertake a rough cost benefit analysis

1. How will you quantify and monetize all your identified (10)

-Costs

-Benefits

-What time frame will you use and why?

2.With a spreadsheet estimate (30)

-The Present Value Cost Economic

-The present Value Benefits Economic

-Discuss any qualitative costs and benefits

3.With the following criteria, determine whether the project is economically feasible (10)

-Net Present Value Criteria

-Benefit Cost Ratio