Spectrum Economics Challenge 4 - Cost Benefit Analysis

Hello dears Steemians! This is my entry to the Spectrum Economics Challenge 4 contest sponsored by the friend @spectrumecons. In which we must perform a cost-benefit analysis to evaluate the decision to invest $5 million in the following possibilities:

Therefore, based on the data provided and taking into account mainly the value of human life and the annual increase in the population, I believe that it would be advisable to make improvements to the local hospital since it is not enough to attend to 100% of the cases. Some patients have to go to the nearest hospital to be treated, which would generate other additional costs such as transportation and travel time, so it would invest $2 million to make improvements to the hospital, which would contribute an additional 15 beds to cover all existing cases.

In addition to this, we got the local school that has a current capacity required to the maximum so that for the next school year would not be enough to meet the demand for necessary seats and children should move to school in another city generating additional costs for transportation and travel time. So it would make an investment of $1 million to make improvements to the local school that would increase its capacity to 30 additional students. This would also lead to a better quality of life for the students and they could also invest their travel time in other activities.

As for the water dam, the current yield is not sufficient and the population must depend on neighbouring villages. Therefore, an investment of 2 million dollars would be desirable, which would result in an additional 2000ML that would cover the demand for water, as well as increase the cultivation of sugar cane and this in turn would generate additional income.

The proposals were made taking into account the priority given to it by the respondents. Among the most requested were the construction of a football stadium and the construction of the Harry Potter world. But don't take them into account, since in the first one only 10% of the population are soccer fans and the second option is discarded because the respondents were leaving the annual Harry Potter convention so it would be in their preferences. However, all the proposals were made to give a better quality of life to the majority of the population of Muffins Town.