development planning and project evaluation

DEVELOPMENT PLANNING AND PROJECTEVALUATION

Takenote that the case studies do not have a lot of information. Students aretherefore expected to make their own additional realistic assumptions for theirselected case study in order to help complete the assignment.

Part one of the assignmentshould not be more than 3 pages

Please make sure to attachthe spreadsheet for Part 2

Case 1:

Although the use of mobile communication devices by motorvehicle drivers is a dangerous practice, studies have shown that up to 80% ofmotor vehicle accidents in in Bubble Country are caused by this practice.Surveys have shown that even though drivers recognize that this is a dangerouspractice, they cannot resist the temptation of using the devices. The surveysalso found that individuals who regularly use their mobile devices whiledriving do not consider fines to be deterrent. The percentage of accidentsattributable to driver distraction caused by the use of mobile communicationdevices has been increasing by 1% per year. A risk assessment has shown thatthe risk of having an accident for a driver using their mobile devices is 15%.Public opinion research suggests that the public is more concern about thisissue than drinking and driving and would like the government to address it.Last year there were 15,000 motor vehicle accidents attributed to driverdistraction in Bubble Country because of mobile communication device use.

In order to address the issue, the government of BubbleCountry is considering a policy that will force car makers to install remoteequipment in all cars to ensure that mobile communication devices cannot beused when driving. Such equipment is already available and it will cost carmakers $10 to install such equipment in each car. The policy will also make itillegal to use a mobile communication device while driving and individualsfound doing this will be given a fine of $800.

Part I: [Should not be more than 3 pages]

Based on what youve learnt fromthis course, and your understanding of project evaluation,

A.   Describe or summarize what youunderstand the issue to be

B.   What do you think should be theobjective and sub-objectives?

C.   Do you see a rationale for publicsector involvement? Explain

D.   Discuss the potential benefits? Becomprehensive

E.    Discuss the potential cost? Becomprehensive

F.    Are there any external impacts?Explain

G.   Identify the stakeholders anddescribe who are the winners and losers?

Part II: [Attach your spreadsheet]

With the information above andany additional information you can find and your own reasonable assumptions,undertake a rough cost benefit analysis

A.   How will you quantify and monetizeall your identified

      Costs

      Benefits

      What time frame will youuse and why?

B.   With a spreadsheet estimate

      The Present Value Cost Economic 

      The present Value Benefits Economic

      Discuss any qualitativecosts and benefits

C.   With the following criteria,determine whether the project is Economically feasible

      Net Present Value Criteria

      Benefit Cost Ratio

***PLEASE ATTACH YOUR SPREADSHEET TO YOUR ANSWER

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