The Mount Beno Walking Trail Extension Program

2301 Words Oct 20th, 2016 10 Pages
The Mount BENO WALKING TRAIL Extension Program

Cost and benefit analysis

Zhining ZHOU
Econ 7740

Executive summary
To promote out door recreation and appreciation of local environment among visitors, National Park Authority of Brisbane (NPAB) is planning to construct additional 12 kilometers to the already 6 kilometers paved track. NPAB should decide to implement project with the YSDP component or out-source the construction project to a private company entirely and whether to introduce a $10 entry fee. This extension project will commence from 2018, and construction will end 2024. Other maintenance is lasting to the end of project’s life in 2043

Social benefit cost analysis valued the cost and benefit for both referent and non-referent group and including four parts, namely Project Analysis, Private Analysis, Efficiency Analysis and Referent Group Analysis. The analysis is at both market and efficiency price.
It is highly recommended to undertake option 1b as it has the greatest benefit to users. As well as option 1b is less risk. Option 1a is the second feasible scenario. It is also suggest that option 2 should be rejected. And base on the sensitivity analysis, preference of option 1b will maintain the same no matter how the variables change.

In addition, as benefit of option 1b relies on the growth rate, the analysis will be varied if the growth rate changed significantly.

1. Introduction
In this project, National Park Authority of…
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