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The City of is considering building a public swimming pool in Analysts have estimated the present values of the following effects over the expected useful
The City of is considering building a public swimming pool in Analysts have estimated the present values of the following effects over the expected useful life of the pool. Fill up the table below answering questions a through d. Indicate the costs with minus signs and the benefits with plus signs before the figures. Then calculate the NPV and offer decisions from different perspectives. PV (million dollars) Provincial grant 2.2 Construction and maintenance cost 12.5 Personnel cost (maintenance) 8.2 Revenue from city residents 8.6 Revenue from non-residents 2.2 Scrap value (after the project life ends) 6.8 a. From the perspective of Analysts, what are costs and benefits? How much is the NPV? Imagine that you, as an analysist, the City of Edmonton has asked you to do the analysis. [1 point] b. From the perspective of the City Council [Guardians], compute the CBA and offer decision. [1 point] 2 c. From the perspective of the Construction and Building department [Spenders], compute the CBA and offer decisions. [1 point] d. Compute the CBA from the global perspective [assume the entire world as one society. [1 point]
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