(Tiểu luận) group assignmenttopic 6 cost benefit analysis for a national park

National Economics University *** GROUP ASSIGNMENT Topic 6: Cost - Benefit Analysis For A National Park Group member Đinh Thúy Quỳnh (Leader) Lê Lưu Thùy Linh Nguyễn Thị Thanh Hằng Lương Mỹ Hạnh Nguyễn Phượng Hiền Nguyễn Quang Vũ Nguyễn Nhật Minh Nguyễn Tiến Đông Nguyễn Chí Thành Class Investment Economics 60 Subject Cost Benefit Analysis Professor TS Hoàng Thu Hà ✦ HÀ NỘI - 2021 ✦ 11184218 11182681 11181524 11181588 11181671 11185622 11183353 11180960 11184481 A NATIONAL PARK Table of Content Option Eco green park I Concept: II Identify Cost-benefit associated with the project III Valuing impacts 2 Option Creative Park I Concept: II Identify Cost-benefit associated with the project III Valuing impacts 9 10 11 Option Sport Park I Concept: II Identify Cost-benefit associated with the project III Valuing impacts 15 15 17 17 Option Astronomical Park I Concept II Identify Cost-benefit associated with the project III Valuing impacts 21 21 23 23 Option Eco green park I Concept: From the entrance of the park, there will be a green path surrounded by trees and grass with statues made from recycled waste, serving visitors to check-in and have a picnic space In addition, visitors can fully enjoy the atmosphere with outdoor activities such as cycling, jogging along the road Picture 1.1 Eco green Park Besides, there are rows of benches so that guests can stop to avoid the sun under the trees and enjoy the atmosphere Moreover, public wastebaskets and propaganda slogans about preserving the environment are indispensable Picture 1.2 Eco Green Park - preserving nature Going straight to the center will be a bridge spanning a canal with two banks of flowers surrounding a greenhouse with a tropical landscape inside and a small lake occupying an empty space at the end of the greenhouse, and the larger space inside is a place to hold events and exhibitions Picture 1.3 Eco Green Park - Flower garden Furthermore, to meet the entertainment needs of visitors as well as to increase profits, the park can sell vending machines so that guests can buy water or fast food II Identify Cost-benefit associated with the project Table 1.1 Cost-benefit analysis Primary benefits Primary costs With market price Non-market price With market price Non-market price Reduce the cost of air condition Traffic noise production decrease Cost of acquiring Temporary affect the property the living environment of surrounding people (dust, noise pollution) Create income from tourism Create beautiful scene Design and construction cost Reduce stormwater management cost Enhance air quality Operation and maintenance cost Create income from events, exhibitions, vending machine Educational and social benefit Reduce the cost of healthcare expenditure The opportunity costs associated with the loss of property tax income that the community would have received if the property had been developed for other purposes Landscaping costs III Valuing impacts Table 1.2 Benefit(annual revenue) No Category The average revenue per year (million vnd) Vending machine 3600 Events, exhibition 1200 Parking 536.55 Public toilet 219 Bicycle rental service 730 Grass skiing service 1314 Children’s playground (sculpture painting, float home ) 3650 Total 11249.55 Table 1.3 Investment capital Cost (million vnd) No Category Construction cost note green-house construction cost is 300 million VND including transparent canopy imported fee is 150 million 2,500 dong (including 10% of tariff) Equipment cost 800 Project management cost 1,000 Construction Investment Consultancy Expense 1,000 Other cost 1,000 including labour cost Contingency expenses 800 Compensation expense 1,000 Total 8,100 100% state capital Table 1.4.1 Investment capital (labor cost) Period No Position Before operation (from year to year 3) After the operation (from year4 to year 20) Wage person month (million Number VND) per Wage per per person per year (million VND) Wage per year (million VND) Construction Supervisor 108 108 Worker 15 1.5 18 270 Total 16 10.5 126 378 Manager 12 144 144 Sanitation worker 72 216 Security guard 0 Gardener 72 288 Document continues below Discover more from: tích kinh Phân doanh PTKD34 Đại học Kinh tế… 341 documents Go to course CÁC DẠNG BÀI TẬP 22 PHÂN TÍCH KINH… Phân tích kinh… 100% (16) Giáo trình - Giáo 150 trình Phân tích kinh… Phân tích kinh doanh 100% (7) Bai phan tich kinh 14 32 doanh Phân tích kinh… 100% (3) Ý tưởng khởi kinh doanh Spa Giày Phân tích kinh… 100% (3) Tong hop kien thuc 22 Toan Phân tích kinh… Maintenance staff 84 Playground staff 72Bài Bicycle rental service staff Total 43 17 100% (3) 168 tập -144 Useful Phân tích 72 kinh… 28 72 516 100% (2) 1032 Table 1.4.2 Investment capital (maintenance cost) No Category Cost (million vnd) Parking area 150 Gardening 900 Material facility (include lighting equipment, watering equipment, CCTV, fence, vending machine ) 750 Greenhouse 300 Road 300 Waste treatment 300 Canal cleaning 300 Total 3000 Note the government subsidize 30% in total Table 1.5 The benefits and costs of the project from both private and social perspectives Year Item Private point view Social point view (million VND) (million VND) From year Revenue 11249.55 11249.55 Labor cost 378 378 Greenhouse construction 300 286.36 -> Construction cost 2500 2486.36 -> Investment From 8100 Benefit year to capital year Total 8478 8036.36 Cost 8329.16 Labor cost 1032 825.6 Maintenance cost 3000 2100 4032 2925.6 From year to year 20 Total Net profit (private pointview) 7217.55 Net profit (social pointview) 8323.95 Table 1.6 The benefit and cost of the non market price Benefit Method Cost of avoidance (avoid the cost of Traffic noise soundproof wall production decrease construction) Annual One time (million VND) (million VND) 30 Beautiful scene Hedonic pricing (increase the value of the land if the nature scene is preserved) 500 Enhance the air Cost of avoidance quality (avoid air purifier) Contingent valuation method (WTP survey) - how much Recreational activity are people willing to (educational and pay for the public social benefit) recreational service 0,4 Annual One time (million VND) (million VND) Cost Method Temporary affect the living environment of surrounding people (dust, noise pollution) Contingent valuation (WTA survey) - how much are people willing to accept for the temporary dust/noise pollution Table Total Cost and Benefit of the Project (Unit: million VND) Year Benefit 0,00 0,00 0,00 11782 11782 11782 11782 20 11782 Cost 8481 8481 2925.60 2925.60 2925.60 2925.60 8481 2925.60 Table 1.8 Real Cost and Benefit (Unit: million VND) Year Nominal benefit CPI Real benefit Nominal Year cost CPI Real cost 0 100.00 0 100.00 0.00 102.00 8481 102.00 8314.71 104.04 8481 104.04 8151.67 106.12 8481 106.12 7991.84 11781.95 108.24 10884.70 2926 108.24 2702.80 11781.95 110.41 10671.28 2926 110.41 2649.81 11781.95 112.62 10462.03 2926 112.62 2597.85 11781.95 114.87 10256.90 2926 114.87 2546.91 11781.95 117.17 10055.78 2926 117.17 2496.97 11781.95 119.51 9858.61 2926 119.51 2448.01 10 11781.95 121.90 9665.30 10 2926 121.90 2400.01 Option Sport Park I Concept: This is a project to provide public sport space for people of all ages It is expected to enhance citizens' physical as well as mental health, especially for children This park is also famous for being the ideal place to hold team building The main facilities of this park include: - Outdoor space: + Tennis courts, basketball courts, playground for pre-school and schoolaged children + picnic shelters (nearby stream) + Restroom building with all-gender restrooms + A stream where people can join kayak + Water fountain - In-door sport complex + Artificial mountain climbing (for kids, adolescents) + Trampoline jumping + Gym With an area of around 28 hectares, Sports Park anchors the redevelopment of the former tobacco factory, and offers a world class destination for all interests Sports Park will provide high-quality facilities, not only for major events but also for daily enjoyment by the community With a wide variety of sports venues, open spaces, park facilities, retail and dining outlets, it is set to be an urban oasis to meet the diverse needs of the public, and professional and amateur athletes 16 Picture 3.1 Sport Park Design Picture 3.2 Sport Park Main Facilities 17 II Identify Cost-benefit associated with the project Table 3.1 Identify cost-benefit Primary Benefits With market Non price price Primary Costs Market With market Non price price Market - Income Improve the Construction from the local people cost camping health gear rental Temporary pollution air - Provide Offer places to Maintenance jobs for exercise no cost people matter what the living weather’s like nearby that day :D Temporary noise pollution - Income Green from kayak atmosphere, rental beautiful scene Operation cost III Valuing impacts Description: A Foreign company with 100% foreign capital has a project building a sport park in Vietnam with the following data: - Initial investment phase is from year to year 3, operating phase starts from year to year 20 + Construction investment cost in the first years - 1,5 billion yearly + Cost of operation is 55 000 000 VND each year - Annual revenue of the park comes from: + Kayak rents: 50 000 VND/ ticket - on average, 150 kayak tickets are sold each day + Artificial mountain climbing fee: 100 000 VND/ ticket - on average 200 turns per day +Trampoline jumping fee: 100 000 VND/ ticket - on average 150 turns per day + Gym: 50 000 VND/ hour + Parking fee: 5000 VND per motorbike and 20.000 VND per car It is estimated that there are 100 vehicles including 70 motorbikes and 30 cars per day on average + Camping service cost: 50000 VND/ turn - on average 20 turns per day + Tennis court rent: 30000 VND / turn - on average 50 turns each day 18