Managerial Economics Week 12 Individual Work Assignment

Managerial Economics Week 12 Individual Work - Assignment ExampleIncorporating secondary and intangible benefits and costs is an important analytical diaphysis that can help project managers to account for the abide by added that arises from outside the project.The employment assumption in Detroit flying field regarding the benefits of the project is that the project will create more job opportunities for people. There is a positive kin between employment rates in the region and the redevelopment project. There will increase income for resident physician of the atomic number 18a due to the projectWithout incorporating benefits in calculating the Benefit-cost ratio, the BCR equals discounted incremental costs. The project would be very dear(p) to implement hence would not be desirable to conduct.The assumption is that the facility will lead to increased revenues from hotels and other conventional facilities. The assumption is realistic since the hotels would accommodate custome rs. Good customer services and accommodation atomic number 18 some of the core areas of the hotel facility that will generate revenues in addition to creating employment opportunities for people. Hotels generate revenue from room rentals, food and beverage sales. Improving customer services, adding new revenue source and branding the hotel are some of the strategies that allow hotels to generate high levels of revenues (Rosehill, 2014).The desirability of the project slightly decreases even though the BCR value is less than 1. Reducing benefits from hotel facilities and excluding employment benefits makes the project less desirable for