This includes an assessment of the financial, economic and social impacts of establishing the program and its operation over the six-year period 2016- 2021. (As each DTO stays in the program for 2 years, the active DTOs from the final 2021 intake will continue in the EDCP through 2022.) As some of the benefits discussed above are of a longer term duration, you should consider all of these where relevant over the period 2015-2035.
2. Although your main objective is to report is to make recommendations to the SOE based on the net benefits to the Referent Group, you are also required to consider the costs and benefits to: (i) the various sub-categories of stakeholders within the Government of the State of Euphoria (SOE); the Department of justice (DoJ) and Department of Human Services (DHS), and, (ii) ‘other’ stakeholders in SOE, aggregated as one stakeholder group, which includes the families, victims, the offenders, and the rest of Euphorian society at large; and, (iii) other non-Referent Group stakeholders in the Federal Republic of Oz; viz. the Federal Government of Oz and Community Services Bank of Oz (CSBO).
In addition to presenting and discussing the results for your ‘Base Case’ scenario, you should also undertake extensive sensitivity testing to check the robustness of your findings and recommendations. It is your role to identify the variables that give rise to the greatest variability in the results. Among these should be: (i) the drop-out rate among EDCP participants; (ii) the comparable recidivism rates between the DTOs and the control group; (iii) the benefit decay rate; and, (iv) the Value of a Statistical life (VSL).
As part of your sensitivity analysis you should:
(i) show the results also for a most pessimistic and most optimistic scenario;
(ii) discuss whether you believe any other variable is of sufficient relevance and uncertainty for inclusion in a sensitivity analysis, with a clear and concise
justification for your opinion;
(iii) identify the respective threshold values for each individual variable selected for
sensitivity testing, at which the NPV of the aggregate Referent Group net benefit becomes zero. You should also comment on the likelihood of each threshold value being within a feasible range of values for that variable;
(iv) identify and discuss any other costs or benefits not included in the analysis, which you believe should be taken into account, with a clear statement justifying your position. (To guide you, two relevant papers on the topic have been provided in BB; Cohen (2000) and Dossetor (2011). These should be cited in your report if/when used, together with any other reference material from your own research.)
In constructing your spreadsheets you are required to use the template Excel spreadsheet downloadable from Blackboard. You should not change the structure of the template spreadsheet unless requested by an instructor to do so. All analysis should be conducted in 2015 prices in thousands of dollars with one decimal place.
You are required to enter your name and student ID number in the space provided at the top of the ‘Input Data’ sheet in the template Excel Workbook.
Your written report should not be more than 12 pages in length, including executive summary and tables. It should be on A4 size pages (portrait orientation only) in PDF format, 12-point Times New Roman font, 1.5 spacing, and 2.5 margins on all sides. Penalties apply for excessive length.
The report should begin with an executive summary of no more than one page. Results of the sensitivity analyses should be reported in summary tables included in the text, and where necessary, in more detailed tables in an Appendix (not included in 12 pages). Do not attach printed copies of spreadsheets (e.g. in PDF) to your main report, although sections showing summary results can be cut and pasted into the report.