This exercise considers a simplified cost-benefit analysis of whether a new housing de- velopment in the Thames Gateway in London should be required to install sprinklers in all dwellings. Use the spreadsheet Cost-Benefit-Sprinklers.xlsx to for this exercise. The analysis is based in part on parameters from a cost-benefit analysis published by the Department for Communities and Local Government in February 2010. The analysis esti- mates the costs and benefits of fitting a representative dwelling in this new development with sprinklers.

The benefits of sprinklers that are quantified in the cost-benefit analysis are deaths prevented, serious and light injuries prevented, and property damage prevented by installing sprinklers. What other benefits could sprinklers have? Are you com- fortable excluding these from the cost-benefit analysis?

The costs that are quantified by the cost-benefit analysis are the installation costs and annual maintenance costs. What other costs might sprinklers have? Are you comfortable excluding these from the cost-benefit analysis?