development planning and project evaluation

DEVELOPMENT PLANNING AND PROJECT
EVALUATION

Take
note that the case studies do not have a lot of information. Students are
therefore expected to make their own additional realistic assumptions for their
selected case study in order to help complete the assignment.

Part one of the assignment
should not be more than 3 pages
Please make sure to attach
the spreadsheet for Part 2

Case 1:
Although the use of mobile communication devices by motor
vehicle drivers is a dangerous practice, studies have shown that up to 80% of
motor vehicle accidents in in Bubble Country are caused by this practice.
Surveys have shown that even though drivers recognize that this is a dangerous
practice, they cannot resist the temptation of using the devices. The surveys
also found that individuals who regularly use their mobile devices while
driving do not consider fines to be deterrent. The percentage of accidents
attributable to driver distraction caused by the use of mobile communication
devices has been increasing by 1% per year. A risk assessment has shown that
the 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 this
issue than drinking and driving and would like the government to address it.
Last year there were 15,000 motor vehicle accidents attributed to driver
distraction in Bubble Country because of mobile communication device use.

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

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

Based on what you’ve learnt from
this course, and your understanding of project evaluation,

A.
Describe or summarize what you
understand the issue to be
B.
What do you think should be the
objective and sub-objectives?
C.
Do you see a rationale for public
sector involvement? Explain
D.
Discuss the potential benefits? Be
comprehensive
E.
Discuss the potential cost? Be
comprehensive
F.
Are there any external impacts?
Explain
G.
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

A.
How will you quantify and monetize
all your identified
·
Costs
·
Benefits
·
What time frame will you
use and why?

B.
With a spreadsheet estimate
·
The Present Value Cost –
Economic
·
The present Value Benefits
– Economic
·
Discuss any qualitative
costs and benefits

C.
With the following criteria,
determine whether the project is Economically feasible
·
Net Present Value Criteria
·
Benefit Cost Ratio

Last Completed Projects