Question
The government of a very poor country is considering a program to drain swamps and provide bed nets to villagers to protect them against malaria.
The government of a very poor country is considering a program to drain swamps and provide bed nets to villagers to protect them against malaria. The program would cost $1 million per year for 5 years. The program would save the lives of 100 children (average age 5), who would then have life expectancies of 60 more years. In addition, the program would prevent 500 other children from catching malaria but surviving. These children would not carry malaria throughout their remaining lives, would not be 25% disabled, and would also live for 60 additional years. Program costs occur at the beginning of each year, benefits at the end. The governments discount rate is 10%. The governments value of life is a DALY of $2000. Should the government adopt this program? Show and explain your calculations. Use Excels PV function.
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