Additional Information: Another company has offered to purchase the Bayou contract from TWW and to assume responsibility for all current and future liabilities. If TWW sells the contract, it would initially receive $200 million for the sale, but there is a 50% chance that "bad press," human capital recruiting challenges, and distrust among potential customers and government regulators would cost it $500 million in future business opportunities. Furthermore, the bats would still be at risk if the new owner of the contract proceeds with construction. Choice a: Do nothing and proceed with the project as originally planned. Use the following questions to explain your decision. Answer the question as the Government Representative, Mayor's Office1. How may the supply and demand of local real estate be impacted by these decisions? 2. How may the market price of local real estate be impacted by these decisions? 3. May the answers to these questions change as time passes? 4. From a Faith perspective, how should we address the value of human and bat life?5. Can traditional economic models adequately quantify these factors? Question Instructions: Answer each question based on the decisions your group made. Address each question from a different perspective (from part 4) and explain the rationale behind your decisions for each question. Each question should be answered around 150 - 200 words. Yet another torrential rainstorm has smashed into the city of Houston, causing severe floodingconditions and property damage. The municipal government signs a contract with a localconstruction company named Texas Water Works (TWW) to expand a Bayou drainage system inthe most heavily damaged neighborhoods.At first, all stakeholders are pleased with the contract. However, before construction begins, apair of disturbing revelations disrupts the TWW's development plans.First, a local environmental group launches a series of protests about a threatened bat colony thatis discovered under bridges across the construction site. Next, a local news station breaks aninvestigative story that representatives of TWW may have paid a financial "gratuity" to agovernment official shortly before the official approved the environmental terms of the project.You will be placed in a group of three individuals, with each individual assuming one of thefollowing roles:- Chief Executive Officer, TWW.- Government Representative, Mayor's Office.- Public Activist, Environmental Organization.-You will engage in a series of four conversations. After each conversation, you will make adecision. If the outcome of the decision depends on an event that may or may not occur, use thefree "True Random Number Generator” at random.org to "roll the dice" (figuratively speaking)and determine what happens next. Be sure to follow the instructions located in each instructiondocument.

Additional Information: Another company has offered to purchase the Bayou contract from TWW and to assume responsibility for all current and future liabilities. If TWW sells the contract, it would initially receive $200 million for the sale, but there is a 50% chance that "bad press," human capital recruiting challenges, and distrust among potential customers and government regulators would cost it $500 million in future business opportunities. Furthermore, the bats would still be at risk if the new owner of the contract proceeds with construction. Choice a: Do nothing and proceed with the project as originally planned. Use the following questions to explain your decision. Answer the question as the Government Representative, Mayor's Office 1. How may the supply and demand of local real estate be impacted by these decisions? 2. How may the market price of local real estate be impacted by these decisions? 3. May the answers to these questions change as time passes? 4. From a Faith perspective, how should we address the value of human and bat life? 5. Can traditional economic models adequately quantify these factors? Question Instructions: Answer each question based on the decisions your group made. Address each question from a different

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Additional Information: Another company has offered to purchase the Bayou contract from TWW and to assume responsibility for all current and future liabilities. If TWW sells the contract, it would initially receive $200 million for the sale, but there is a 50% chance that "bad press," human capital recruiting challenges, and distrust among potential customers and government regulators would cost it $500 million in future business opportunities. Furthermore, the bats would still be at risk if the new owner of the contract proceeds with construction. Choice a: Do nothing and proceed with the project as originally planned. Use the following questions to explain your decision. Answer the question as the Government Representative, Mayor's Office 1. How may the supply and demand of local real estate be impacted by these decisions? 2. How may the market price of local real estate be impacted by these decisions? 3. May the answers to these questions change as time passes? 4. From a Faith perspective, how should we address the value of human and bat life? 5. Can traditional economic models adequately quantify these factors? Question Instructions: Answer each question based on the decisions your group made. Address each question from a different perspective (from part 4) and explain the rationale behind your decisions for each question. Each question should be answered around 150 - 200 words.

Yet another torrential rainstorm has smashed into the city of Houston, causing severe flooding
conditions and property damage. The municipal government signs a contract with a local
construction company named Texas Water Works (TWW) to expand a Bayou drainage system in
the most heavily damaged neighborhoods.
At first, all stakeholders are pleased with the contract. However, before construction begins, a
pair of disturbing revelations disrupts the TWW's development plans.
First, a local environmental group launches a series of protests about a threatened bat colony that
is discovered under bridges across the construction site. Next, a local news station breaks an
investigative story that representatives of TWW may have paid a financial "gratuity" to a
government official shortly before the official approved the environmental terms of the project.
You will be placed in a group of three individuals, with each individual assuming one of the
following roles:
- Chief Executive Officer, TWW.
- Government Representative, Mayor's Office.
- Public Activist, Environmental Organization.
-
You will engage in a series of four conversations. After each conversation, you will make a
decision. If the outcome of the decision depends on an event that may or may not occur, use the
free "True Random Number Generator” at random.org to "roll the dice" (figuratively speaking)
and determine what happens next. Be sure to follow the instructions located in each instruction
document.

Expert Solution

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Each decision on the local real estate market should be carefully considered. The supply and demand of local real estate as well as the market price may be impacted differently depending on whether TWW proceeds with the project, sells it, or shuts it down.

As a Government Representative in the Mayor's Office, I would carefully consider the potential impact of each decision on the local real estate market.

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