A short (no longer than 3 page single space) memo concluding with a recommendation about what option should be pursued. The memo should be supported by the information in the tables indicated in Appendix 2. The tables reflect sensitivity analyses for shadow prices for leisure of $2.50 and $3.75 per hour, and boundary point (real) discount rates of 4% and 8%.
2. The memo write up needs to be yours alone. Use the Cincinnati memo as a guidepost, and again look at the syllabus for writing guidelines. Note that there are some differences between the Cincinnati case and this case – specifically, the Cincinnati case is largely a Cost Effectiveness analysis. So don’t extend the format of the Cincinnati memo inappropriately. Adapt the general format to the particulars of this case.