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Cost Benefit Analysis City Stadium

This cost-benefit analysis examines the costs and benefits of building a city stadium over a 10-year period. It shows the annual costs and benefits discounted to their present value and calculates the net present value (NPV) of -$8.11 and internal rate of return (IRR) of 7.398%, indicating the costs slightly outweigh the benefits when discounted over 10 years.

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Andrea Lyn Salonga Cacay
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65 views1 page

Cost Benefit Analysis City Stadium

This cost-benefit analysis examines the costs and benefits of building a city stadium over a 10-year period. It shows the annual costs and benefits discounted to their present value and calculates the net present value (NPV) of -$8.11 and internal rate of return (IRR) of 7.398%, indicating the costs slightly outweigh the benefits when discounted over 10 years.

Uploaded by

Andrea Lyn Salonga Cacay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Cost- Benefit Analysis: City Stadium

Total Discount Present


Year Costs Benefits Benefits Factor Value
0 $60.00 $0.00 ($60.00) 1.00 ($60.00)
1 $1.00 $3.00 $2.00 0.91 $1.82
2 $1.00 $3.00 $2.00 0.83 $1.65
3 $1.00 $10.00 $9.00 0.75 $6.76
4 $1.00 $10.00 $9.00 0.68 $6.15
5 $1.50 $12.50 $11.00 0.62 $6.83
6 $1.50 $12.50 $11.00 0.56 $6.21
7 $1.50 $12.50 $11.00 0.51 $5.64
8 $1.50 $15.00 $13.50 0.47 $6.30
9 $2.00 $15.00 $13.00 0.42 $5.51
10 $2.00 $15.00 $13.00 0.39 $5.01

NPV= ($8.11)
Discount
Rate= 10.00%

Shortcut
NPV= ($8.11)
IRR= 7.398%

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