ASSIGNMENT

Using the information below, forecast the costs associated with each alternative and perform a sensitivity analysis.

For the sensitivity analysis, focus on the construction overrun cost and change the discount rate to 5%. Perform a separate sensitivity analysis for each component.

Make sure to present the NPV for each relevant alternative and under each condition recalculated for the sensitivity analysis. Use Appendices 7.2 and 7.3 (attached) from the textbook to calculate discount costs. (on excel and summaries is it on the word)

Since you have been hired to conduct the policy analysis for the City of Green bow’s community pool proposal, you are in a position to make a recommendation to the city council. How would you present the comparison of alternatives to key decision makers? Using this alternative comparison, what is your policy recommendation to the city council? Why do you feel that this is the best solution to resolve the problems identified by the city council related to economic decline and community building concerns? Would you make any alternative policy recommendations beyond the community pool to resolve the problem? Finally, how would you determine if your policy analysis is successful.