Imagine that your client, Hillside County Forest Preserve (HCFP), is considering how best to protect their natural lagoons. They have asked for your help, and you have found the following/;? If they do nothing, the lagoons are sure to deteriorate and have a societal cost of $100,000;? If they enact an experimental new program, called Lagoon Preservation Project (?LPP?), then there is a 50% chance that it will be successful, yielding a societal benefit of $70,000. There is a 50% chance it will not be successful, causing further harm to the lagoons, yielding a societal cost of $150,000;? Enacting LPP will cost $10,000;Assume all costs and benefits above are expressed in present values.;a. Which option has the higher expected benefit to society? Show the decision tree that supports your answer.;b. What would the likelihood of success of LPP need to be for enacting it to have the same Expected Value as not enacting it?
Paper#80569 | Written in 18-Jul-2015Price : $22