The local municipal government wants to expand affordable housing in a part of the city. There are three options: doing nothing, a green net-zero-energy affordable housing plan, and a regular affordable housing plan. You are to run a benefit-cost analysis using the annuity approach when calculating present values in order to determine which plan is most preferred. What specific variables do you need to consider both in general and for each project in order to run a successful BCA? Create sample data. What data or impact might not be quantifiably measurable?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 77P
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The local municipal government wants to expand affordable housing in a part of the city. There are three options: doing nothing, a green net-zero-energy affordable housing plan, and a regular affordable housing plan. You are to run a benefit-cost analysis using the annuity approach when calculating present values in order to determine which plan is most preferred. What specific variables do you need to consider both in general and for each project in order to run a successful BCA? Create sample data. What data or impact might not be quantifiably measurable?

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