Dear steemians, I hope you are well, this time I am addressing you thanks to the initiative of my friend @spectrumecons, whose challenge is to carry out a cost-benefit analysis in terms of the decision to invest a budget of 5,000,000 $ for an imaginary village called Muffins Town. I am grateful in advance for the opportunity it gives us to develop our economic skills.

First of all I would like to make my personal interpretation about the cost-benefit analysis, it is nothing more than the relationship between the necessary investment to carry out a given project and the potential benefits that it will provide after its construction, and not only the economic return but also the social and environmental benefits are evaluated.

In relation to this exercise, the most important value is that of human life, so I would propose using the budget of $5,000,000 as follows:

1.-Make an improvement to the local hospital, this is mainly due to the fact that the current infrastructure of the village does not allow to attend 100% of the cases that arise, so its inhabitants have to go to another center or other city to be attended to which in turn increases the costs of transportation and travel time. The suggested improvement is the Average Cost with a budget of 3,000,000 $, which translates into the incorporation of 30 additional beds in order to cover all the cases that are generated in the town, also taking into account the population growth of 10%.

2.- Improve the Water Dam, since currently the supply of the village dam is below that required by the current population and the crops currently being developed, so an average investment of 2,000 is proposed.In order to incorporate 2000ML of water, to stop depending on the water of the dam of the neighboring village, an additional 1500ML of water would be available for the new inhabitants of the village (demographic growth) and for the cultivation of sugarcane that would provide a certain volume of income to the village that could be reinvested in the village according to their later needs.

With respect to the cost-benefit analysis carried out previously, it was carried out in a qualitative manner, taking as a priority the value of people's lives and the self-sufficiency of the people, since it was proposed to improve the hospital in order to attend to all the health cases that may arise, which translates into an increase in the quality of life of the inhabitants of the village since they will have a hospital where they will be able to be treated, so they will not need to travel to another hospital and/or city to be treated. As for the other improvement, it was proposed to increase in 2000ML the production of water from the dam in order not to depend on neighboring villages, increase the volume of sugarcane cultivation and thus the generation of additional income.

Both proposals seek to improve the quality of life of the population in general and therefore to increase the value of the same, by materializing both proposals the people would be self-supplying with elementary services for the current population and that comes in demographic growth of around 10%, also taken into consideration in this exercise as well as the data yielded by the survey although the greater percentage had the construction of the soccer field and the construction of the park the world of Harry Potter,the first one was only going to benefit 10% of the current population and the second one was considered circumstantial since the participants in the survey were coming out of an event related to Harry Potter, so it was decided to attend to the causes that seek the improvement of the general public.

I hope that this participation can achieve the objective set in this contest and I will be looking forward to the next challenges, since I think this is an excellent proposal to encourage the economy and its concepts at any level of society...