Revamping Public Parks to Reduce Accidents - Project Evaluation

A city is faced with a challenge in their public parks. There have been increased accidents with the use of playground equipments in these public parks with injuries to children over the past three years. Last year alone 8,000 children got hurt, some of them seriously, resulting in 5 deaths and several hospital admissions. Accidents associated with these playground equipments have been increasing 2% every year over the past three years. The public is therefore very concerned and as a result, admissions to the park have been declining by 3% every year. The total visits to the public parks in the city in 2016 were 80,000 a week and the willingness to pay to visit any of the public parks in $20 per person. The city authorities are concerned about the issue and are trying frantically to resolve it. The city is proposing to revamp the public parks to reduce the risks of accidents and to stop the decline in admissions to the public parks. There are 20 functioning public parks in the city and will cost $50,000,000 to revamp all the public parks to address the issue.    Part I: [Should not be more than 3 pages] Based on what you’ve learnt from this course, and your understanding of project evaluation, Describe or summarize what you understand the issue to be What do you think should be the objective and sub-objectives? Do you see a rationale for public sector involvement? Explain Discuss the potential benefits? Be comprehensive Discuss the potential cost? Be comprehensive Are there any external impacts? Explain Identify the stakeholders and describe who are the winners and losers? Part II: [Attach your spreadsheet] With the information above and any additional information you can find and your own reasonable assumptions, undertake a rough cost benefit analysis How will you quantify and monetize all your identified Costs Benefits What time frame will you use and why? With a spreadsheet estimate The Present Value Cost – Economic   The present Value Benefits – Economic Discuss any qualitative costs and benefits With the following criteria, determine whether the project is Economically feasible Net Present Value Criteria Benefit Cost Ratio