113 review questions copy

50m b 100m c 150m d 250m 15 in 2000 the province of

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Unformatted text preview: A. $50m B. $100m C. $150m D. $250m 15. In 2000 the Province of British Columbia forecast that the 2010 Olympic Games would cost $1m and yield benefits equal to $1b. Investment for the games was begun and $500m had been spent by the end of 2006. A re-evaluation was undertaken in 2007. At that time it was estimated that only $200m of the amount already spent could be recovered if the games were cancelled. Completing the games would require another $500m in costs. Moreover, new information suggested that the games would yield only $800m in benefits rather than the $1b originally forecast.* As at 2007, what is the continuation payoff for the games? A. $-200m B. $100m C. $200m D. $300m 8 16. Recall Question 15. Suppose the province had been blessed with perfect foresight back in 2000. What would have been the expected net benefit of the games? A. $-200m B. $100m C. $200m D. $300m 17. Recall Question 15. What should the 2007 re-evaluation have recommended? A. Cancel the games. B. Complete the games....
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