cost benefit analysis tool
Post on 25-Jan-2016
10 Views
Preview:
DESCRIPTION
TRANSCRIPT
Economic Analysis <title of the investment proposal>Summary TableFriday, April 21, 2023
Appraisal period (years) 30 30 30Capital Costs $0 $2,000,000 $30,000,000Whole of Life Costs $15,000,000 $17,000,000 $45,000,000Cost-benefit analysis of monetary costs and benefits at the Public Sector Discount Rate Present Value of Benefits $5,849,716 $7,604,631 $39,841,423Present Value of Costs $5,849,716 $7,849,716 $35,479,345Benefit Cost Ratio 1.00 0.97 1.12Net Present Value $0 -$245,085 $4,362,077Multi-Criteria Analysis ranking of intangible costs and benefits (if any) Criteria 1 1.50 2.50 2.50Criteria 2 1.25 2.25Criteria 3 0.60 0.90 1.20Criteria 4 0.40 0.30 0.50Weighted Score 3.8 6.0 4.2
Option 1 <description>
Option 2 <description>
Option 3 <description>
30$55,000,000$70,000,000
$47,718,390$43,903,348
1.09$3,815,042
2.501.501.200.80
6.0
Option 4 <description>
Cost Benefit Analysis <title of the investment proposal>Option 1: <description of the option>Friday, April 21, 2023
Key Assumptions:Public Sector Discount Rate 2011 8.00%Appraisal period (years) 30 years
Summary of the Results of the Analysis:Capital Costs $0Whole of Life Costs $15,000,000Present Value of Benefits $5,849,716Present Value of Costs $5,849,716Benefit Cost Ratio 1.00Net Present Value $0
0 1 2Year 2012 2013 2014Discount factor (mid-year) 0.96225 0.89097 0.82497Discount factor (start of year) 1.00000 0.92593 0.85734
Benefit 1 <description> $100,000 $100,000 $100,000Benefit 2 <description> $100,000 $100,000 $100,000Benefit 3 <description> $100,000 $100,000 $100,000Benefit 4 <description> $100,000 $100,000 $100,000Benefit 5 <description> $100,000 $100,000 $100,000Total Benefits (mid-year) $500,000 $500,000 $500,000
Present Value of Benefits (mid-yr) $481,125 $445,486 $412,487Present Value of Benefits $5,849,716
Cost 1 <description> -$100,000 -$100,000 -$100,000Cost 2 <description> -$100,000 -$100,000 -$100,000Cost 3 <description> -$100,000 -$100,000 -$100,000Cost 4 <description> -$100,000 -$100,000 -$100,000Cost 5 <description> -$100,000 -$100,000 -$100,000Total Costs (mid-year) -$500,000 -$500,000 -$500,000
Capital Costs (at start of year) $0 $0 $0Total Costs -$500,000 -$500,000 -$500,000Total Capital Costs $0Total Whole of Life Costs -$15,000,000
Present Value of Costs (mid-year) -$481,125 -$445,486 -$412,487Present Value of Costs (start year) $0 $0 $0Present Value of Costs (by year) -$481,125 -$445,486 -$412,487Present Value of Costs -$5,849,716
Input the relevant latest published rate from http://www.treasury.govt.nz/publications/guidance/planning/costbenefitanalysis
Input the required period of the analysis, typically the term of the required services (max 50 years)
The sum of the discounted net cash-flows over the appraisal period. Equal to Present Value of Benefits less Present Value of Costs
The sum of the discounted benefits over the appraisal period
Net Cash Flows $0 $0 $0Net Present Value (by year) $0 $0 $0Cumulative NPV $0 $0 $0
Chart data only:Year 0 1 2Present Value of Benefits ($million) $ 0.481 $ 0.445 $ 0.412 Present Value of Costs ($million) -$ 0.481 -$ 0.445 -$ 0.412 Cumulative Net Present Value ($million) $ - $ - $ -
3 4 5 6 7 82015 2016 2017 2018 2019 2020
0.76387 0.70728 0.65489 0.60638 0.56146 0.519870.79383 0.73503 0.68058 0.63017 0.58349 0.54027
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$500,000 $500,000 $500,000 $500,000 $500,000 $500,000
$381,933 $353,641 $327,446 $303,191 $280,732 $259,937
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$381,933 -$353,641 -$327,446 -$303,191 -$280,732 -$259,937$0 $0 $0 $0 $0 $0
-$381,933 -$353,641 -$327,446 -$303,191 -$280,732 -$259,937
Input the relevant latest published rate from http://www.treasury.govt.nz/publications/guidance/planning/costbenefitanalysis
Input the required period of the analysis, typically the term of the required services (max 50 years)
The sum of the discounted net cash-flows over the appraisal period. Equal to Present Value of Benefits less Present Value of Costs
The sum of the discounted benefits over the appraisal period
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
3 4 5 6 7 8 $ 0.382 $ 0.354 $ 0.327 $ 0.303 $ 0.281 $ 0.260 -$ 0.382 -$ 0.354 -$ 0.327 -$ 0.303 -$ 0.281 -$ 0.260 $ - $ - $ - $ - $ - $ -
9 10 11 12 13 142021 2022 2023 2024 2025 2026
0.48136 0.44571 0.41269 0.38212 0.35382 0.327610.50025 0.46319 0.42888 0.39711 0.36770 0.34046
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$500,000 $500,000 $500,000 $500,000 $500,000 $500,000
$240,682 $222,854 $206,346 $191,061 $176,909 $163,804
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$240,682 -$222,854 -$206,346 -$191,061 -$176,909 -$163,804$0 $0 $0 $0 $0 $0
-$240,682 -$222,854 -$206,346 -$191,061 -$176,909 -$163,804
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
9 10 11 12 13 14 $ 0.241 $ 0.223 $ 0.206 $ 0.191 $ 0.177 $ 0.164 -$ 0.241 -$ 0.223 -$ 0.206 -$ 0.191 -$ 0.177 -$ 0.164 $ - $ - $ - $ - $ - $ -
15 16 17 18 19 202027 2028 2029 2030 2031 2032
0.30334 0.28087 0.26007 0.24080 0.22297 0.206450.31524 0.29189 0.27027 0.25025 0.23171 0.21455
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$500,000 $500,000 $500,000 $500,000 $500,000 $500,000
$151,671 $140,436 $130,033 $120,401 $111,483 $103,225
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$151,671 -$140,436 -$130,033 -$120,401 -$111,483 -$103,225$0 $0 $0 $0 $0 $0
-$151,671 -$140,436 -$130,033 -$120,401 -$111,483 -$103,225
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
15 16 17 18 19 20 $ 0.152 $ 0.140 $ 0.130 $ 0.120 $ 0.111 $ 0.103 -$ 0.152 -$ 0.140 -$ 0.130 -$ 0.120 -$ 0.111 -$ 0.103 $ - $ - $ - $ - $ - $ -
21 22 23 24 25 262033 2034 2035 2036 2037 2038
0.19116 0.17700 0.16389 0.15175 0.14051 0.130100.19866 0.18394 0.17032 0.15770 0.14602 0.13520
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$500,000 $500,000 $500,000 $500,000 $500,000 $500,000
$95,578 $88,498 $81,943 $75,873 $70,253 $65,049
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$95,578 -$88,498 -$81,943 -$75,873 -$70,253 -$65,049$0 $0 $0 $0 $0 $0
-$95,578 -$88,498 -$81,943 -$75,873 -$70,253 -$65,049
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
21 22 23 24 25 26 $ 0.096 $ 0.088 $ 0.082 $ 0.076 $ 0.070 $ 0.065 -$ 0.096 -$ 0.088 -$ 0.082 -$ 0.076 -$ 0.070 -$ 0.065 $ - $ - $ - $ - $ - $ -
27 28 29 1000 1000 10002039 2040 2041 2042 2043 2044
0.12046 0.11154 0.10328 0.00000 0.00000 0.000000.12519 0.11591 0.10733 0.00000 0.00000 0.00000
$100,000 $100,000 $100,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0$500,000 $500,000 $500,000 $0 $0 $0
$60,231 $55,769 $51,638 $0 $0 $0
-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$500,000 -$500,000 -$500,000 $0 $0 $0
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 $0 $0 $0
-$60,231 -$55,769 -$51,638 $0 $0 $0$0 $0 $0 $0 $0 $0
-$60,231 -$55,769 -$51,638 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
27 28 29 1000 1000 1000 $ 0.060 $ 0.056 $ 0.052 $ - $ - $ - -$ 0.060 -$ 0.056 -$ 0.052 $ - $ - $ - $ - $ - $ - $ - $ - $ -
1000 1000 1000 1000 1000 10002045 2046 2047 2048 2049 2050
0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
1000 1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
1000 1000 1000 1000 1000 10002051 2052 2053 2054 2055 2056
0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
1000 1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
1000 1000 1000 1000 10002057 2058 2059 2060 2061
0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50-$1
$0
$1Cost Benefit Analysis: Option 1
Present Value of Benefits ($million) Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Toda
ys D
olla
rs (
$ m
illio
ns)
Cost Benefit Analysis <title of the investment proposal>Option 2: <description of the option>Friday, April 21, 2023
Key Assumptions:Public Sector Discount Rate 2011 8.00%Appraisal period (years) 30 years
Summary of the Results of the Analysis:Capital Costs $2,000,000Whole of Life Costs $17,000,000Present Value of Benefits $7,604,631Present Value of Costs $7,849,716Benefit Cost Ratio 0.97Net Present Value -$245,085
0 1 2Year 2012 2013 2014Discount factor (mid-year) 0.96225 0.89097 0.82497Discount factor (start of year) 1.00000 0.92593 0.85734
Benefit 1 <description> $250,000 $250,000 $250,000Benefit 2 <description> $100,000 $100,000 $100,000Benefit 3 <description> $100,000 $100,000 $100,000Benefit 4 <description> $100,000 $100,000 $100,000Benefit 5 <description> $100,000 $100,000 $100,000Total Benefits (mid-year) $650,000 $650,000 $650,000
Present Value of Benefits (mid-yr) $625,463 $579,132 $536,234Present Value of Benefits $7,604,631
Cost 1 <description> -$100,000 -$100,000 -$100,000Cost 2 <description> -$100,000 -$100,000 -$100,000Cost 3 <description> -$100,000 -$100,000 -$100,000Cost 4 <description> -$100,000 -$100,000 -$100,000Cost 5 <description> -$100,000 -$100,000 -$100,000Total Costs (mid-year) -$500,000 -$500,000 -$500,000
Capital Costs (at start of year) -$2,000,000 $0 $0Total Costs -$2,500,000 -$500,000 -$500,000Total Capital Costs -$2,000,000Total Whole of Life Costs -$17,000,000
Present Value of Costs (mid-year) -$481,125 -$445,486 -$412,487Present Value of Costs (start year) -$2,000,000 $0 $0Present Value of Costs (by year) -$2,481,125 -$445,486 -$412,487Present Value of Costs -$7,849,716
Input the relevant latest published rate from http://www.treasury.govt.nz/publications/guidance/planning/costbenefitanalysis
Input the required period of the analysis, typically the term of the required services (max 50 years)
The sum of the discounted benefits over the appraisal period
The sum of the discounted net cash-flows over the appraisal period. Equal to Present Value of Benefits less Present Value of Costs
Net Cash Flows -$1,850,000 $150,000 $150,000Net Present Value (by year) -$1,855,662 $133,646 $123,746Cumulative NPV -$1,855,662 -$1,722,017 -$1,598,270
Chart data only:Year 0 1 2Present Value of Benefits ($million) $ 0.625 $ 0.579 $ 0.536 Present Value of Costs ($million) -$ 2.481 -$ 0.445 -$ 0.412 Cumulative Net Present Value ($million) -$ 1.856 -$ 1.722 -$ 1.598
3 4 5 6 7 82015 2016 2017 2018 2019 2020
0.76387 0.70728 0.65489 0.60638 0.56146 0.519870.79383 0.73503 0.68058 0.63017 0.58349 0.54027
$250,000 $250,000 $250,000 $250,000 $250,000 $250,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$650,000 $650,000 $650,000 $650,000 $650,000 $650,000
$496,513 $459,734 $425,679 $394,148 $364,952 $337,918
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$381,933 -$353,641 -$327,446 -$303,191 -$280,732 -$259,937$0 $0 $0 $0 $0 $0
-$381,933 -$353,641 -$327,446 -$303,191 -$280,732 -$259,937
Input the relevant latest published rate from http://www.treasury.govt.nz/publications/guidance/planning/costbenefitanalysis
Input the required period of the analysis, typically the term of the required services (max 50 years)
The sum of the discounted benefits over the appraisal period
The sum of the discounted net cash-flows over the appraisal period. Equal to Present Value of Benefits less Present Value of Costs
$150,000 $150,000 $150,000 $150,000 $150,000 $150,000$114,580 $106,092 $98,234 $90,957 $84,220 $77,981
-$1,483,691 -$1,377,598 -$1,279,364 -$1,188,407 -$1,104,188 -$1,026,207
3 4 5 6 7 8 $ 0.497 $ 0.460 $ 0.426 $ 0.394 $ 0.365 $ 0.338 -$ 0.382 -$ 0.354 -$ 0.327 -$ 0.303 -$ 0.281 -$ 0.260 -$ 1.484 -$ 1.378 -$ 1.279 -$ 1.188 -$ 1.104 -$ 1.026
9 10 11 12 13 142021 2022 2023 2024 2025 2026
0.48136 0.44571 0.41269 0.38212 0.35382 0.327610.50025 0.46319 0.42888 0.39711 0.36770 0.34046
$250,000 $250,000 $250,000 $250,000 $250,000 $250,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$650,000 $650,000 $650,000 $650,000 $650,000 $650,000
$312,887 $289,710 $268,250 $248,380 $229,981 $212,946
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$240,682 -$222,854 -$206,346 -$191,061 -$176,909 -$163,804$0 $0 $0 $0 $0 $0
-$240,682 -$222,854 -$206,346 -$191,061 -$176,909 -$163,804
$150,000 $150,000 $150,000 $150,000 $150,000 $150,000$72,205 $66,856 $61,904 $57,318 $53,073 $49,141
-$954,002 -$887,146 -$825,242 -$767,923 -$714,851 -$665,709
9 10 11 12 13 14 $ 0.313 $ 0.290 $ 0.268 $ 0.248 $ 0.230 $ 0.213 -$ 0.241 -$ 0.223 -$ 0.206 -$ 0.191 -$ 0.177 -$ 0.164 -$ 0.954 -$ 0.887 -$ 0.825 -$ 0.768 -$ 0.715 -$ 0.666
15 16 17 18 19 202027 2028 2029 2030 2031 2032
0.30334 0.28087 0.26007 0.24080 0.22297 0.206450.31524 0.29189 0.27027 0.25025 0.23171 0.21455
$250,000 $250,000 $250,000 $250,000 $250,000 $250,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$650,000 $650,000 $650,000 $650,000 $650,000 $650,000
$197,172 $182,567 $169,043 $156,521 $144,927 $134,192
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$151,671 -$140,436 -$130,033 -$120,401 -$111,483 -$103,225$0 $0 $0 $0 $0 $0
-$151,671 -$140,436 -$130,033 -$120,401 -$111,483 -$103,225
$150,000 $150,000 $150,000 $150,000 $150,000 $150,000$45,501 $42,131 $39,010 $36,120 $33,445 $30,967
-$620,208 -$578,077 -$539,067 -$502,947 -$469,502 -$438,535
15 16 17 18 19 20 $ 0.197 $ 0.183 $ 0.169 $ 0.157 $ 0.145 $ 0.134 -$ 0.152 -$ 0.140 -$ 0.130 -$ 0.120 -$ 0.111 -$ 0.103 -$ 0.620 -$ 0.578 -$ 0.539 -$ 0.503 -$ 0.470 -$ 0.439
21 22 23 24 25 262033 2034 2035 2036 2037 2038
0.19116 0.17700 0.16389 0.15175 0.14051 0.130100.19866 0.18394 0.17032 0.15770 0.14602 0.13520
$250,000 $250,000 $250,000 $250,000 $250,000 $250,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$650,000 $650,000 $650,000 $650,000 $650,000 $650,000
$124,252 $115,048 $106,526 $98,635 $91,329 $84,564
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$95,578 -$88,498 -$81,943 -$75,873 -$70,253 -$65,049$0 $0 $0 $0 $0 $0
-$95,578 -$88,498 -$81,943 -$75,873 -$70,253 -$65,049
$150,000 $150,000 $150,000 $150,000 $150,000 $150,000$28,673 $26,550 $24,583 $22,762 $21,076 $19,515
-$409,861 -$383,312 -$358,729 -$335,967 -$314,891 -$295,377
21 22 23 24 25 26 $ 0.124 $ 0.115 $ 0.107 $ 0.099 $ 0.091 $ 0.085 -$ 0.096 -$ 0.088 -$ 0.082 -$ 0.076 -$ 0.070 -$ 0.065 -$ 0.410 -$ 0.383 -$ 0.359 -$ 0.336 -$ 0.315 -$ 0.295
27 28 29 1000 1000 10002039 2040 2041 2042 2043 2044
0.12046 0.11154 0.10328 0.00000 0.00000 0.000000.12519 0.11591 0.10733 0.00000 0.00000 0.00000
$250,000 $250,000 $250,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0$650,000 $650,000 $650,000 $0 $0 $0
$78,300 $72,500 $67,129 $0 $0 $0
-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$500,000 -$500,000 -$500,000 $0 $0 $0
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 $0 $0 $0
-$60,231 -$55,769 -$51,638 $0 $0 $0$0 $0 $0 $0 $0 $0
-$60,231 -$55,769 -$51,638 $0 $0 $0
$150,000 $150,000 $150,000 $0 $0 $0$18,069 $16,731 $15,491 $0 $0 $0
-$277,307 -$260,577 -$245,085 -$245,085 -$245,085 -$245,085
27 28 29 1000 1000 1000 $ 0.078 $ 0.072 $ 0.067 $ - $ - $ - -$ 0.060 -$ 0.056 -$ 0.052 $ - $ - $ - -$ 0.277 -$ 0.261 -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245
1000 1000 1000 1000 1000 10002045 2046 2047 2048 2049 2050
0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
-$245,085 -$245,085 -$245,085 -$245,085 -$245,085 -$245,085
1000 1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245
1000 1000 1000 1000 1000 10002051 2052 2053 2054 2055 2056
0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
-$245,085 -$245,085 -$245,085 -$245,085 -$245,085 -$245,085
1000 1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245
1000 1000 1000 1000 10002057 2058 2059 2060 2061
0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0
-$245,085 -$245,085 -$245,085 -$245,085 -$245,085
1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245 -$ 0.245
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50-$3
-$2
-$1
$0
$1Cost Benefit Analysis: Option 2
Present Value of Benefits ($million) Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Toda
ys D
olla
rs (
$ m
illio
ns)
Cost Benefit Analysis <title of the investment proposal>Option 3: <description of the option>Friday, April 21, 2023
Key Assumptions:Public Sector Discount Rate 2011 8.00%Appraisal period (years) 30 years
Summary of the Results of the Analysis:Capital Costs $30,000,000Whole of Life Costs $45,000,000Present Value of Benefits $39,841,423Present Value of Costs $35,479,345Benefit Cost Ratio 1.12Net Present Value $4,362,077
0 1 2Year 2012 2013 2014Discount factor (mid-year) 0.96225 0.89097 0.82497Discount factor (start of year) 1.00000 0.92593 0.85734
Benefit 1 <description> $400,000 $800,000 $800,000Benefit 2 <description> $1,000,000 $1,000,000 $1,000,000Benefit 3 <description> $100,000 $100,000 $100,000Benefit 4 <description> $100,000 $100,000 $100,000Benefit 5 <description> $750,000 $1,500,000 $1,500,000Total Benefits (mid-year) $2,350,000 $3,500,000 $3,500,000
Present Value of Benefits (mid-yr) $2,261,289 $3,118,404 $2,887,411Present Value of Benefits $39,841,423
Cost 1 <description> -$100,000 -$100,000 -$100,000Cost 2 <description> -$100,000 -$100,000 -$100,000Cost 3 <description> -$100,000 -$100,000 -$100,000Cost 4 <description> -$100,000 -$100,000 -$100,000Cost 5 <description> -$100,000 -$100,000 -$100,000Total Costs (mid-year) -$500,000 -$500,000 -$500,000
Capital Costs (at start of year) -$25,000,000 -$5,000,000 $0Total Costs -$25,500,000 -$5,500,000 -$500,000Total Capital Costs -$30,000,000Total Whole of Life Costs -$45,000,000
Present Value of Costs (mid-year) -$481,125 -$445,486 -$412,487Present Value of Costs (start year) -$25,000,000 -$4,629,630 $0Present Value of Costs (by year) -$25,481,125 -$5,075,116 -$412,487Present Value of Costs -$35,479,345
Input the relevant latest published rate from http://www.treasury.govt.nz/publications/guidance/planning/costbenefitanalysis
Input the required period of the analysis, typically the term of the required services (max 50 years)
The sum of the discounted benefits over the appraisal period
The sum of the discounted net cash-flows over the appraisal period. Equal to Present Value of Benefits less Present Value of Costs
Net Cash Flows -$23,150,000 -$2,000,000 $3,000,000Net Present Value (by year) -$23,219,837 -$1,956,712 $2,474,924Cumulative NPV -$23,219,837 -$25,176,548 -$22,701,624
Chart data only:Year 0 1 2Present Value of Benefits ($million) $ 2.261 $ 3.118 $ 2.887 Present Value of Costs ($million) -$ 25.481 -$ 5.075 -$ 0.412 Cumulative Net Present Value ($million) -$ 23.220 -$ 25.177 -$ 22.702
3 4 5 6 7 82015 2016 2017 2018 2019 2020
0.76387 0.70728 0.65489 0.60638 0.56146 0.519870.79383 0.73503 0.68058 0.63017 0.58349 0.54027
$800,000 $800,000 $800,000 $800,000 $800,000 $800,000$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000$3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000
$2,673,529 $2,475,490 $2,292,120 $2,122,334 $1,965,124 $1,819,559
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$381,933 -$353,641 -$327,446 -$303,191 -$280,732 -$259,937$0 $0 $0 $0 $0 $0
-$381,933 -$353,641 -$327,446 -$303,191 -$280,732 -$259,937
Input the relevant latest published rate from http://www.treasury.govt.nz/publications/guidance/planning/costbenefitanalysis
Input the required period of the analysis, typically the term of the required services (max 50 years)
The sum of the discounted benefits over the appraisal period
The sum of the discounted net cash-flows over the appraisal period. Equal to Present Value of Benefits less Present Value of Costs
$3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000$2,291,596 $2,121,848 $1,964,674 $1,819,143 $1,684,392 $1,559,622
-$20,410,028 -$18,288,180 -$16,323,505 -$14,504,362 -$12,819,971 -$11,260,349
3 4 5 6 7 8 $ 2.674 $ 2.475 $ 2.292 $ 2.122 $ 1.965 $ 1.820 -$ 0.382 -$ 0.354 -$ 0.327 -$ 0.303 -$ 0.281 -$ 0.260 -$ 20.410 -$ 18.288 -$ 16.324 -$ 14.504 -$ 12.820 -$ 11.260
9 10 11 12 13 142021 2022 2023 2024 2025 2026
0.48136 0.44571 0.41269 0.38212 0.35382 0.327610.50025 0.46319 0.42888 0.39711 0.36770 0.34046
$800,000 $800,000 $800,000 $800,000 $800,000 $800,000$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000$3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000
$1,684,777 $1,559,978 $1,444,425 $1,337,430 $1,238,361 $1,146,631
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$240,682 -$222,854 -$206,346 -$191,061 -$176,909 -$163,804$0 $0 $0 $0 $0 $0
-$240,682 -$222,854 -$206,346 -$191,061 -$176,909 -$163,804
$3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000$1,444,094 $1,337,124 $1,238,078 $1,146,369 $1,061,452 $982,826
-$9,816,254 -$8,479,130 -$7,241,052 -$6,094,683 -$5,033,230 -$4,050,404
9 10 11 12 13 14 $ 1.685 $ 1.560 $ 1.444 $ 1.337 $ 1.238 $ 1.147 -$ 0.241 -$ 0.223 -$ 0.206 -$ 0.191 -$ 0.177 -$ 0.164 -$ 9.816 -$ 8.479 -$ 7.241 -$ 6.095 -$ 5.033 -$ 4.050
15 16 17 18 19 202027 2028 2029 2030 2031 2032
0.30334 0.28087 0.26007 0.24080 0.22297 0.206450.31524 0.29189 0.27027 0.25025 0.23171 0.21455
$800,000 $800,000 $800,000 $800,000 $800,000 $800,000$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000$3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000
$1,061,695 $983,051 $910,232 $842,808 $780,378 $722,572
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$151,671 -$140,436 -$130,033 -$120,401 -$111,483 -$103,225$0 $0 $0 $0 $0 $0
-$151,671 -$140,436 -$130,033 -$120,401 -$111,483 -$103,225
$3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000$910,024 $842,615 $780,199 $722,407 $668,895 $619,347
-$3,140,380 -$2,297,764 -$1,517,565 -$795,158 -$126,263 $493,084
15 16 17 18 19 20 $ 1.062 $ 0.983 $ 0.910 $ 0.843 $ 0.780 $ 0.723 -$ 0.152 -$ 0.140 -$ 0.130 -$ 0.120 -$ 0.111 -$ 0.103 -$ 3.140 -$ 2.298 -$ 1.518 -$ 0.795 -$ 0.126 $ 0.493
21 22 23 24 25 262033 2034 2035 2036 2037 2038
0.19116 0.17700 0.16389 0.15175 0.14051 0.130100.19866 0.18394 0.17032 0.15770 0.14602 0.13520
$800,000 $800,000 $800,000 $800,000 $800,000 $800,000$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$100,000 $100,000 $100,000 $100,000 $100,000 $100,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000$3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $3,500,000
$669,048 $619,489 $573,601 $531,112 $491,770 $455,343
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$95,578 -$88,498 -$81,943 -$75,873 -$70,253 -$65,049$0 $0 $0 $0 $0 $0
-$95,578 -$88,498 -$81,943 -$75,873 -$70,253 -$65,049
$3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000$573,470 $530,991 $491,658 $455,239 $421,517 $390,294
$1,066,554 $1,597,544 $2,089,202 $2,544,441 $2,965,958 $3,356,252
21 22 23 24 25 26 $ 0.669 $ 0.619 $ 0.574 $ 0.531 $ 0.492 $ 0.455 -$ 0.096 -$ 0.088 -$ 0.082 -$ 0.076 -$ 0.070 -$ 0.065 $ 1.067 $ 1.598 $ 2.089 $ 2.544 $ 2.966 $ 3.356
27 28 29 1000 1000 10002039 2040 2041 2042 2043 2044
0.12046 0.11154 0.10328 0.00000 0.00000 0.000000.12519 0.11591 0.10733 0.00000 0.00000 0.00000
$800,000 $800,000 $800,000 $0 $0 $0$1,000,000 $1,000,000 $1,000,000 $0 $0 $0
$100,000 $100,000 $100,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0
$1,500,000 $1,500,000 $1,500,000 $0 $0 $0$3,500,000 $3,500,000 $3,500,000 $0 $0 $0
$421,614 $390,383 $361,466 $0 $0 $0
-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$500,000 -$500,000 -$500,000 $0 $0 $0
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 $0 $0 $0
-$60,231 -$55,769 -$51,638 $0 $0 $0$0 $0 $0 $0 $0 $0
-$60,231 -$55,769 -$51,638 $0 $0 $0
$3,000,000 $3,000,000 $3,000,000 $0 $0 $0$361,383 $334,614 $309,828 $0 $0 $0
$3,717,635 $4,052,249 $4,362,077 $4,362,077 $4,362,077 $4,362,077
27 28 29 1000 1000 1000 $ 0.422 $ 0.390 $ 0.361 $ - $ - $ - -$ 0.060 -$ 0.056 -$ 0.052 $ - $ - $ - $ 3.718 $ 4.052 $ 4.362 $ 4.362 $ 4.362 $ 4.362
1000 1000 1000 1000 1000 10002045 2046 2047 2048 2049 2050
0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$4,362,077 $4,362,077 $4,362,077 $4,362,077 $4,362,077 $4,362,077
1000 1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4.362 $ 4.362 $ 4.362 $ 4.362 $ 4.362 $ 4.362
1000 1000 1000 1000 1000 10002051 2052 2053 2054 2055 2056
0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$4,362,077 $4,362,077 $4,362,077 $4,362,077 $4,362,077 $4,362,077
1000 1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4.362 $ 4.362 $ 4.362 $ 4.362 $ 4.362 $ 4.362
1000 1000 1000 1000 10002057 2058 2059 2060 2061
0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$4,362,077 $4,362,077 $4,362,077 $4,362,077 $4,362,077
1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4.362 $ 4.362 $ 4.362 $ 4.362 $ 4.362
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50-$30
-$25
-$20
-$15
-$10
-$5
$0
$5
$10Cost Benefit Analysis: Option 3
Present Value of Benefits ($million) Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Toda
ys D
olla
rs (
$ m
illio
ns)
Cost Benefit Analysis <title of the investment proposal>Option 4: <description of the option>Friday, April 21, 2023
Key Assumptions:Public Sector Discount Rate 2011 8.00%Appraisal period (years) 30 years
Summary of the Results of the Analysis:Capital Costs $55,000,000Whole of Life Costs $70,000,000Present Value of Benefits $47,718,390Present Value of Costs $43,903,348Benefit Cost Ratio 1.09Net Present Value $3,815,042
0 1 2Year 2012 2013 2014Discount factor (mid-year) 0.96225 0.89097 0.82497Discount factor (start of year) 1.00000 0.92593 0.85734
Benefit 1 <description> $400,000 $800,000 $1,200,000Benefit 2 <description> $1,000,000 $1,000,000 $1,000,000Benefit 3 <description> $100,000 $100,000 $500,000Benefit 4 <description> $100,000 $100,000 $100,000Benefit 5 <description> $750,000 $1,500,000 $1,500,000Total Benefits (mid-year) $2,350,000 $3,500,000 $4,300,000
Present Value of Benefits (mid-yr) $2,261,289 $3,118,404 $3,547,391Present Value of Benefits $47,718,390
Cost 1 <description> -$100,000 -$100,000 -$100,000Cost 2 <description> -$100,000 -$100,000 -$100,000Cost 3 <description> -$100,000 -$100,000 -$100,000Cost 4 <description> -$100,000 -$100,000 -$100,000Cost 5 <description> -$100,000 -$100,000 -$100,000Total Costs (mid-year) -$500,000 -$500,000 -$500,000
Capital Costs (at start of year) -$25,000,000 -$5,000,000 $0Total Costs -$25,500,000 -$5,500,000 -$500,000Total Capital Costs -$55,000,000Total Whole of Life Costs -$70,000,000
Present Value of Costs (mid-year) -$481,125 -$445,486 -$412,487Present Value of Costs (start year) -$25,000,000 -$4,629,630 $0Present Value of Costs (by year) -$25,481,125 -$5,075,116 -$412,487Present Value of Costs -$43,903,348
Input the relevant latest published rate from http://www.treasury.govt.nz/publications/guidance/planning/costbenefitanalysis
Input the required period of the analysis, typically the term of the required services (max 50 years)
The sum of the discounted benefits over the appraisal period
The sum of the discounted net cash-flows over the appraisal period. Equal to Present Value of Benefits less Present Value of Costs
Net Cash Flows -$23,150,000 -$2,000,000 $3,800,000Net Present Value (by year) -$23,219,837 -$1,956,712 $3,134,904Cumulative NPV -$23,219,837 -$25,176,548 -$22,041,645
Chart data only:Year 0 1 2Present Value of Benefits ($million) $ 2.261 $ 3.118 $ 3.547 Present Value of Costs ($million) -$ 25.481 -$ 5.075 -$ 0.412 Cumulative Net Present Value ($million) -$ 23.220 -$ 25.177 -$ 22.042
3 4 5 6 7 82015 2016 2017 2018 2019 2020
0.76387 0.70728 0.65489 0.60638 0.56146 0.519870.79383 0.73503 0.68058 0.63017 0.58349 0.54027
$1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$500,000 $500,000 $500,000 $500,000 $500,000 $500,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000$4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000
$3,284,621 $3,041,316 $2,816,033 $2,607,438 $2,414,295 $2,235,458
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 $0 -$5,000,000 $0 $0-$500,000 -$500,000 -$500,000 -$5,500,000 -$500,000 -$500,000
-$381,933 -$353,641 -$327,446 -$303,191 -$280,732 -$259,937$0 $0 $0 -$3,150,848 $0 $0
-$381,933 -$353,641 -$327,446 -$3,454,039 -$280,732 -$259,937
Input the relevant latest published rate from http://www.treasury.govt.nz/publications/guidance/planning/costbenefitanalysis
Input the required period of the analysis, typically the term of the required services (max 50 years)
The sum of the discounted benefits over the appraisal period
The sum of the discounted net cash-flows over the appraisal period. Equal to Present Value of Benefits less Present Value of Costs
$3,800,000 $3,800,000 $3,800,000 -$1,200,000 $3,800,000 $3,800,000$2,902,689 $2,687,675 $2,488,588 -$846,600 $2,133,563 $1,975,521
-$19,138,956 -$16,451,281 -$13,962,694 -$14,809,294 -$12,675,731 -$10,700,210
3 4 5 6 7 8 $ 3.285 $ 3.041 $ 2.816 $ 2.607 $ 2.414 $ 2.235 -$ 0.382 -$ 0.354 -$ 0.327 -$ 3.454 -$ 0.281 -$ 0.260 -$ 19.139 -$ 16.451 -$ 13.963 -$ 14.809 -$ 12.676 -$ 10.700
9 10 11 12 13 142021 2022 2023 2024 2025 2026
0.48136 0.44571 0.41269 0.38212 0.35382 0.327610.50025 0.46319 0.42888 0.39711 0.36770 0.34046
$1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$500,000 $500,000 $500,000 $500,000 $500,000 $500,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000$4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000
$2,069,869 $1,916,545 $1,774,579 $1,643,128 $1,521,415 $1,408,718
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 $0 -$5,000,000 $0 $0 $0-$500,000 -$500,000 -$5,500,000 -$500,000 -$500,000 -$500,000
-$240,682 -$222,854 -$206,346 -$191,061 -$176,909 -$163,804$0 $0 -$2,144,414 $0 $0 $0
-$240,682 -$222,854 -$2,350,761 -$191,061 -$176,909 -$163,804
$3,800,000 $3,800,000 -$1,200,000 $3,800,000 $3,800,000 $3,800,000$1,829,186 $1,693,691 -$576,182 $1,452,067 $1,344,506 $1,244,913
-$8,871,024 -$7,177,333 -$7,753,515 -$6,301,448 -$4,956,941 -$3,712,028
9 10 11 12 13 14 $ 2.070 $ 1.917 $ 1.775 $ 1.643 $ 1.521 $ 1.409 -$ 0.241 -$ 0.223 -$ 2.351 -$ 0.191 -$ 0.177 -$ 0.164 -$ 8.871 -$ 7.177 -$ 7.754 -$ 6.301 -$ 4.957 -$ 3.712
15 16 17 18 19 202027 2028 2029 2030 2031 2032
0.30334 0.28087 0.26007 0.24080 0.22297 0.206450.31524 0.29189 0.27027 0.25025 0.23171 0.21455
$1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$500,000 $500,000 $500,000 $500,000 $500,000 $500,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000$4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000
$1,304,368 $1,207,748 $1,118,286 $1,035,450 $958,750 $887,731
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
$0 -$5,000,000 $0 $0 $0 $0-$500,000 -$5,500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$151,671 -$140,436 -$130,033 -$120,401 -$111,483 -$103,225$0 -$1,459,452 $0 $0 $0 $0
-$151,671 -$1,599,888 -$130,033 -$120,401 -$111,483 -$103,225
$3,800,000 -$1,200,000 $3,800,000 $3,800,000 $3,800,000 $3,800,000$1,152,698 -$392,140 $988,252 $915,049 $847,267 $784,507
-$2,559,330 -$2,951,470 -$1,963,218 -$1,048,169 -$200,902 $583,604
15 16 17 18 19 20 $ 1.304 $ 1.208 $ 1.118 $ 1.035 $ 0.959 $ 0.888 -$ 0.152 -$ 1.600 -$ 0.130 -$ 0.120 -$ 0.111 -$ 0.103 -$ 2.559 -$ 2.951 -$ 1.963 -$ 1.048 -$ 0.201 $ 0.584
21 22 23 24 25 262033 2034 2035 2036 2037 2038
0.19116 0.17700 0.16389 0.15175 0.14051 0.130100.19866 0.18394 0.17032 0.15770 0.14602 0.13520
$1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$500,000 $500,000 $500,000 $500,000 $500,000 $500,000$100,000 $100,000 $100,000 $100,000 $100,000 $100,000
$1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000$4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000 $4,300,000
$821,973 $761,086 $704,710 $652,509 $604,175 $559,421
-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$100,000 -$100,000 -$100,000 -$100,000 -$100,000 -$100,000-$500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$500,000
-$5,000,000 $0 $0 $0 $0 -$5,000,000-$5,500,000 -$500,000 -$500,000 -$500,000 -$500,000 -$5,500,000
-$95,578 -$88,498 -$81,943 -$75,873 -$70,253 -$65,049-$993,279 $0 $0 $0 $0 -$676,009
-$1,088,857 -$88,498 -$81,943 -$75,873 -$70,253 -$741,058
-$1,200,000 $3,800,000 $3,800,000 $3,800,000 $3,800,000 -$1,200,000-$266,884 $672,588 $622,767 $576,636 $533,922 -$181,637$316,721 $989,309 $1,612,075 $2,188,711 $2,722,633 $2,540,997
21 22 23 24 25 26 $ 0.822 $ 0.761 $ 0.705 $ 0.653 $ 0.604 $ 0.559 -$ 1.089 -$ 0.088 -$ 0.082 -$ 0.076 -$ 0.070 -$ 0.741 $ 0.317 $ 0.989 $ 1.612 $ 2.189 $ 2.723 $ 2.541
27 28 29 1000 1000 10002039 2040 2041 2042 2043 2044
0.12046 0.11154 0.10328 0.00000 0.00000 0.000000.12519 0.11591 0.10733 0.00000 0.00000 0.00000
$1,200,000 $1,200,000 $1,200,000 $0 $0 $0$1,000,000 $1,000,000 $1,000,000 $0 $0 $0
$500,000 $500,000 $500,000 $0 $0 $0$100,000 $100,000 $100,000 $0 $0 $0
$1,500,000 $1,500,000 $1,500,000 $0 $0 $0$4,300,000 $4,300,000 $4,300,000 $0 $0 $0
$517,983 $479,614 $444,087 $0 $0 $0
-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$100,000 -$100,000 -$100,000 $0 $0 $0-$500,000 -$500,000 -$500,000 $0 $0 $0
$0 $0 $0 $0 $0 $0-$500,000 -$500,000 -$500,000 $0 $0 $0
-$60,231 -$55,769 -$51,638 $0 $0 $0$0 $0 $0 $0 $0 $0
-$60,231 -$55,769 -$51,638 $0 $0 $0
$3,800,000 $3,800,000 $3,800,000 $0 $0 $0$457,752 $423,845 $392,449 $0 $0 $0
$2,998,749 $3,422,593 $3,815,042 $3,815,042 $3,815,042 $3,815,042
27 28 29 1000 1000 1000 $ 0.518 $ 0.480 $ 0.444 $ - $ - $ - -$ 0.060 -$ 0.056 -$ 0.052 $ - $ - $ - $ 2.999 $ 3.423 $ 3.815 $ 3.815 $ 3.815 $ 3.815
1000 1000 1000 1000 1000 10002045 2046 2047 2048 2049 2050
0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$3,815,042 $3,815,042 $3,815,042 $3,815,042 $3,815,042 $3,815,042
1000 1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3.815 $ 3.815 $ 3.815 $ 3.815 $ 3.815 $ 3.815
1000 1000 1000 1000 1000 10002051 2052 2053 2054 2055 2056
0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0$0 $0 $0 $0 $0 $0
$3,815,042 $3,815,042 $3,815,042 $3,815,042 $3,815,042 $3,815,042
1000 1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3.815 $ 3.815 $ 3.815 $ 3.815 $ 3.815 $ 3.815
1000 1000 1000 1000 10002057 2058 2059 2060 2061
0.00000 0.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.00000 0.00000
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$0 $0 $0 $0 $0$0 $0 $0 $0 $0
$3,815,042 $3,815,042 $3,815,042 $3,815,042 $3,815,042
1000 1000 1000 1000 1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3.815 $ 3.815 $ 3.815 $ 3.815 $ 3.815
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50-$30
-$25
-$20
-$15
-$10
-$5
$0
$5
$10Cost Benefit Analysis: Option 4
Present Value of Benefits ($million) Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Toda
ys D
olla
rs (
$ m
illio
ns)
Multi-Criteria Analysis <title of the investment proposal>
Option 1<description>
Criteria<description> 50.0% 3 1.50<description> 25.0% 5 1.25<description> 15.0% 4 0.60<description> 10.0% 4 0.40
Overall 100.0% 16 3.8
refer to the comments on the marked cells for guidance
Criteria Weight
Score (out of
10)Weighted
Score
Option 2 Option 3 Option 4<description> <description> <description>
5 2.50 5 2.50 5 2.509 2.25 0 6 1.506 0.90 8 1.20 8 1.203 0.30 5 0.50 8 0.80
23 6.0 18 4.2 27 6.0
Score (out of
10)Weighted
Score
Score (out of
10)Weighted
Score
Score (out of
10)Weighted
Score
top related