Question 5=25 [17(7+10) +8] (A) The City of Guelph plans to build a swimming pool in the South end. It would cost the city $20 million dollar to build this facility and $75,000 each year to operate and maintain this facility. The useful life of this swimming pool is 20 years. If the city charges $1 per visit, the new pool would receive 450,000 visitors in first year and in subsequent years. A private swimming pool in the city of Guelph changes $5.00 per visit and received 150,000 visitors last year. Assume that. The city borrowed money from local banks at 5 percent interest rate and the expected rate of inflation is 2%; and, The benefits are measured in real dollars and accrue at the end of each year. i. Determine the value of benefits this public swimming pool would provide to the residents of Guelph. Would this be a worthwhile project from society's point of view? Show your results and explain. ii. (B). The Public Health Department of the Republic of Congo in consultation with the World Health Organization (WHO) is considering five alternative programs to vaccinate its citizens against the Ebola virus. The cost associated with each alternative and the number of vaccinations predicted for each program is given in the following table. Program Cost ($ US) Number of Vaccinations A 46,000 15,000 B 80,000 17,000 125,000 30,000 D 200,000 100,000 E 500,000 250,000 What would be the most cost-effective program for Ebola vaccination in this country? Why? Question 5=25 [17(7+10) +8] (A) The City of Guelph plans to build a swimming pool in the South end. It would cost the city $20 million dollar to build this facility and $75,000 each year to operate and maintain this facility. The useful life of this swimming pool is 20 years. If the city charges $1 per visit, the new pool would receive 450,000 visitors in first year and in subsequent years. A private swimming pool in the city of Guelph changes $5.00 per visit and received 150,000 visitors last year. Assume that. The city borrowed money from local banks at 5 percent interest rate and the expected rate of inflation is 2%; and, The benefits are measured in real dollars and accrue at the end of each year. i. Determine the value of benefits this public swimming pool would provide to the residents of Guelph. Would this be a worthwhile project from society's point of view? Show your results and explain. ii. (B). The Public Health Department of the Republic of Congo in consultation with the World Health Organization (WHO) is considering five alternative programs to vaccinate its citizens against the Ebola virus. The cost associated with each alternative and the number of vaccinations predicted for each program is given in the following table. Program Cost ($ US) Number of Vaccinations A 46,000 15,000 B 80,000 17,000 125,000 30,000 D 200,000 100,000 E 500,000 250,000 What would be the most cost-effective program for Ebola vaccination in this country? Why
