dditional 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.   Choice b: Sell the project.  Choice c: Shut down the project.    Pick a choice, either a, b, or c.  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?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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.  

Choice b: Sell the project. 

Choice c: Shut down the project. 

 

Pick a choice, either a, b, or c. 

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 between 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.
Transcribed Image Text: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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Disclaimer: - since you asked multipart question, we are solving only first 3 subparts as per guidelines. If you want ane specific question, then repost and mention them.

 

As a Government Representative in the Mayor's Office, I believe that the decision to shut down the Bayou project is the most appropriate course of action in light of the potential negative impacts on the local environment and community.

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