Independent Study Workshops > PAI 690 Economics Workshop

Exercise 1

Due Thursday 1/31.

The US EPA administers a program of grants and loans to help state and local governments identify and eliminate brownfield sites.   Imagine that the City of Chicago has been awarded such a grant and is considering what to do about Roosevelt and California, a site described in more detail below:

Imagine you have been hired as a consultant to decide what to do about the site.  Please design an appropriate testing program, explain how it would be implemented and calculate the program's expected net present value.  Also indicate the maximum possible cost of testing and the probability that an NFR letter would be issued. 

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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 01/24/2013