Solution Case 2

Note that in this case we use the accounting format where we used red and parenthesis to indicate cost as a negative value and benefit as positive in black ink and no parenthesis.

Case 2

Amounts in millions	Do nothing	Quarantine
Cost dead guests hotel (100 guest @ 2% death rate @ 400k per life)		(0.08)
Cost of lock down hotel (60 days @1M)		(60)
Costs deaths in city assume 100% infected (population @2% death rate @400k per life)	(64,000)	(64,000)
Value of delay in deaths
(Cost of city deaths x (2 months extra life / life expectancy))		183
Total	(64,000)	(63,877)