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LASA 2/1 - Assignment Example

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The Case For, or Against, New Orleans Part A Economically, New Orleans is highly prosperous and this is evident from the expenses of visitors, when it hit an all-time high in the year 2012 with “$5.3 billion,” and the city has aggressive policies to develop these numbers ("Mission 2010: New Orleans", 2010)…
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LASA 2/1
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LASA 2/1

Download file to see previous pages... In financial terms, New Orleans makes better profits through its port and this is excluding the tourists’ income. Tourism has a financial impact of an excess of $6 billion in the city, “providing 78,000 jobs and critical funding for city services, schools, and infrastructure” (Travel and Tour World, 2013). New Orleans’ largest organization is intending to create a smart development strategy, with an objective of reaching “13.7 million visitors and $11 billion in visitor spending and the creation of 30,000 jobs by 2018, the city’s tricentennial” (Travel and Tour World, 2013). The Cost benefit analysis for rebuilding the New Orleans considers the cost as well as benefits in arithmetical terms and includes the direct costs connected with rebuilding the public services, amenities, dock and educational structures. Cost Benefit Analysis Costs (In Billions) Facility Cost (in billion $) Businesses 10 Hospitals 8 Schools 6 Government agencies 7 Roads/Streets 6 Construction crews 5 Levees to withstand level 5 Hurricanes 32 Coast lines/ Docks 12 landscaping 2 Electricians 4 Cement Workers 4 Houses 2 Road Crews 2 Total Costs 100 The cost shown in the above table represents billion dollars and this includes the various facilities and services aimed at rebuilding the city. The price for building group 5 flood protection systems is estimated to be $32 billion. The advantages of redeveloping New Orleans can be separated majorly in three classes, which are: financial, economic and miscellaneous benefits. The economic benefits include the contribution of the New Orleans city to the overall wealth of the country. The financial benefit mainly relates with the funds produced by the city of New Orleans. The main financial benefits are in terms of the cash created by the docks of New Orleans, as these are a source of direct monetary benefits. Other miscellaneous benefits include the future increase in the population as well as the further progress of the economy of New Orleans, continuation of port business, continuation of seafood business and preservation of coastal wildlife. Decision Tree: A Decision tree is normally used with deductive reasonable thinking. It is used to assist in making accurate decisions and it is also used when there is any difficulty in reaching the end result. “Decisions are based on whether there is a net benefit or cost to the approach, i.e. total benefits less total costs” (Kaplan, 2012). Following are the assumptions for preparing the decision tree: • Chances that an event like Katrina occurs is 0.63. • Chances that an event less than Katrina occurs is 0.37. • Levees relating to New Orleans boost the risk of nearby areas to 0.25. • Citizens of New Orleans will lose their homes as well as livelihoods in case of Katrina like event. • The chances of residents losing their jobs and home is 0.4 in an event less than Katrina. • The mayor of the city faces the threat of losing New Orleans in case of Katrina like event. • New Orleans Federal and state government will share the price of reestablishing housing and other compensations on a 50% basis, in case of an event less than Katrina. • The federal government will be liable for all the expenditure in case of severe damages caused by a Katrina like event. • Damages resulting from price, that is, 100 billion dollars have been estimated through Cost based ...Download file to see next pagesRead More
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