I. Policy/Management Scenario The managers of Smithgall Woods-Dukes Creek Conservation Area have determined that they want Smithgall Woods to provide two primary services valued by people: 1) on-site recreation, and 2) off-site preservation services such as clean drinking water and fish and wildlife existence values. The managers have also determined that there are two primary they are concerned about: 1) people who live near Smithgall Woods who have a relatively higher demand for on-site recreation as compared to off-site preservation services (locals), and 2) people who live far away from Smithgall Woods who have a relatively higher demand for off site preservation services as compared to on-site recreation (nonlocals). The managers realize that there is a limited amount of on-site recreation and off-site preservation services they can provide because of their limited inputs including natural resources (e.g, the fixed size of Smithgall Woods), labor (e.g., fixed number of employees), and capital (eg, fixed equipment). "stakeholder groups The Smithgall Woods managers have hired you to help evaluate a possible management changes. As a first step in this process, you have conducted economic valuation studies and have determined using the travel cost method that the value of a recreation visitor day (RVD) to $20.00 to locals (Group A) and S10.00 to nonlocals (Group B). You have also determined using the contingent valuation method that the value of one unit of off-site preservation services (OPS) is S10.00 to locals (Group A) and S20.00 to nonlocals (Group B). By working with the Smithgall Woods managers, you have determined that the Georgia Department of Natural Resources (DNR) expects them to evaluate any changes in management by calculating a Benefit-Cost Ratio and Net Present Value. The planning horizon is 25 years. The discount rate to be used is 696. Il. Benefit-Cost Analysis Working with the Smithgall Woods managers, you have determined that under current management, the amounts of primary services to both groups are as follows. Group Locals (Group A) Nonlocals (Group B) RVDs 400 days/year 100 days/year OPS 200 units year 700 units/ year