Question
Solution Case 2 Note that in this case we use the accounting format where we used red and parenthesis to indicate cost as a negative
Solution Case 2
Note that in this case we use the accounting format where we used red and parenthesis to indicate cost as a negative value and benefit as positive in black ink and no parenthesis.
Case 2
Amounts in millions | Do nothing | Quarantine |
Cost dead guests hotel (100 guest @ 2% death rate @ 400k per life) | (0.08) | |
Cost of lock down hotel (60 days @1M) | (60) | |
Costs deaths in city assume 100% infected (population @2% death rate @400k per life) | (64,000) | (64,000) |
Value of delay in deaths | ||
(Cost of city deaths x (2 months extra life / life expectancy)) | 183 | |
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|
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Total | (64,000) | (63,877) |
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