CBA2Solutions

CBA2Solutions - A city is considering installing a...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
A city is considering installing a treatment plant to remove cryptosporidium from its source water. Cryptosporidium causes illnesses, the cost of which has been estimated to be $1,400 per year. In some cases, it can cause death. The value of a death avoided (the so-called value of a statistical life) is assumed to be $6 million. The city is considering several plant options, each with its own capital costs and operation and maintenance costs. They are listed on the data sheet. The effectiveness of each plant is somewhat different. Each reduces the probability of illness and death. These reductions are also shown in the data sheet. The numbers represent the expected number of illnesses and deaths avoided if the treatment is used. Which treatment technologies are viable? Which should the city use? How sensitive are the results to the discount rate?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Capital costs Bag Filters 77,048 3,155 0.0100 0.0010 155,451 10,615 0.0500 0.0035 51,974 4,478 0.0500 0.0015 GAC (EBCT = 20, 240 day regeneration) 1,191,000 94,500 0.1000 0.0300 1,104,562 65,882 0.1000 0.0250 708,580 12,065 0.0010 0.0150 1,776,377 69,500 0.1000 0.0250 Cost of illness 1,400 Value of statistical life 6,000,000 Discount rate 0.03 Annual O & M Costs Annual reduction in illnesses Annual reduction in deaths Cartridge Filters (filter loading 30 pgm/filter) Convert to Chloramines (NH4 dose = 0.55mg/l) Ozone (2.0 log dose, 12 minute contact time) UV with UPS (dose = 200 mJ/cm2, UV254 = 0.05, turbidity = 0.1 NTU, Alk = 60 mg/l, Hardness = 100 mg/l) Microfiltration/Ultrafiltration (T = 10C, sewer discharge)
Background image of page 2
1 Bag Filters Costs Benefits Net Discount Discounted Year Capital Illness Deaths Benefit Factor Costs Benefits Net 0 77,048 3,155 14 6,000 -74,189 1.000 80,203 6,014 -74,189 1 0 3,155 14 6,000 2,859 0.971 3,063 5,839 2,776 2 0 3,155 14 6,000 2,859 0.943 2,974 5,669 2,695 3 0 3,155 14 6,000 2,859 0.915 2,887 5,504 2,616 4 0 3,155 14 6,000 2,859 0.888 2,803 5,343 2,540 5 0 3,155 14 6,000 2,859 0.863 2,722 5,188 2,466 6 0 3,155 14 6,000 2,859 0.837 2,642 5,037 2,394 7 0 3,155 14 6,000 2,859 0.813 2,565 4,890 2,324 8 0 3,155 14 6,000 2,859 0.789 2,491 4,748 2,257 9 0 3,155 14 6,000 2,859 0.766 2,418 4,609 2,191 10 0 3,155 14 6,000 2,859 0.744 2,348 4,475 2,127 11 0 3,155 14 6,000 2,859 0.722 2,279 4,345 2,065 12 0 3,155 14 6,000 2,859 0.701 2,213 4,218 2,005 13 0 3,155 14 6,000 2,859 0.681 2,149 4,095 1,947 14 0 3,155 14 6,000 2,859 0.661 2,086 3,976 1,890 15 0 3,155 14 6,000 2,859 0.642 2,025 3,860 1,835 16 0 3,155 14 6,000 2,859 0.623 1,966 3,748 1,782 17 0 3,155 14 6,000 2,859 0.605 1,909 3,639 1,730 18 0 3,155 14 6,000 2,859 0.587 1,853 3,533 1,679 19 0 3,155 14 6,000 2,859 0.570 1,799 3,430 1,630 20 0 3,155 14 6,000 2,859 0.554 1,747 3,330 1,583 Sum 127,144 95,487 -31,657
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Cartridge Filters (filter loading 30 pgm/filter) Costs Benefits Net Discount Discounted Year Capital Illness Deaths Benefit Factor Costs Benefits Net 0 155,451 10,615 70 21,000 -144,996 1.000 166,066 21,070 -144,996 1 0 10,615 70 21,000 10,455 0.971 10,306 20,456 10,151
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

CBA2Solutions - A city is considering installing a...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online