ECON 311 Cost Analysis Assignment

Identify a problem, environmental or otherwise, and two different solutions to that problem.

Describe the needed inputs for each solution and their associated costs, offer estimates of how large these

costs might be (in dollar amounts when possible) and when they occur over the lifetime of the

project/solution. These will likely include the following:

Initial acquisition and/or construction costs

Annual ongoing use, maintenance and operating costs

Retirement costs at the end of the lifetime of the project, if appropriate

In addition to cost considerations, please discuss the sustainability or robustness of each proposed

solution. How likely is failure for each option and what combination of events would lead to that failure?

Is one option riskier than the other for some reason? Does one option present more exposure to some sort

of catastrophe or disaster?

With any luck, the costs of the two options will be lower or higher over the course of the projects'

lifetimes, maybe with Solution A having higher initial costs but lower ongoing costs and Solution B

having lower initial costs but higher ongoing costs.

You should present a calculation of the present value of each option over its lifetime using standard

discounting and an appropriate interest rate.

The point of this exercise isn't necessarily lots of research and precise cost estimates, but rather to

develop an understanding of tradeoffs between different project inputs and their costs. A bit of research

and number-finding is necessary, but it is acceptable to take a guess at any numbers or other factual

information that you cannot find.

Please present your analysis in a PowerPoint using the model provided. Please try to use photos and a

limited amount of text on the slides, putting important narration into the notes for each slide. The point

here is to avoid death by PowerPoint and provide something that would be enjoyable and accessible for

an audience or, alternatively, a presentation you wouldn't mind sitting through if someone else were

presenting it. Your presentation should have approximately 12 to 15 slides, but I'm prepared to be

flexible about this.

Examples and Links to Initial Information:

Here are a few ideas for possible topics that you are welcome to use, but you should think about other

examples, too.

Wastewater Treatment Plants versus Constructed Wetlands for Wastewater Treatment

https://www.epa.gov/wetlands/constructed-wetlands

Solar versus wind turbines for a 1000 kilowatt renewable electricity facility

https://www.eia.gov/todayinenergy/detail.php?id=36813

https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019

Gasoline-powered versus similar electric car for driving 12,000 miles annually

https://www.caranddriver.com/research/a31544842/how-much-is-an-electric-car/

Incandescent vs. CFL vs. LED lightbulbs to provide the equivalent of 100W of incandescent light for

1000 hours a year for 30 years.

https://www.e-education.psu.edu/egee102/node/2036

(don't just present this analysis