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NORTHERN REGIONAL PRISON EIA AND CBA FINAL REPORT JUNE 2020Prepared for Department of Justice SGS Economics and Planning Pty Ltd 2020 This report has been prepared for Department of Justice. SGS Economics
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Identify the project or decision to be evaluated.
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List all the costs associated with the project, including initial costs, ongoing costs, and opportunity costs.
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List all the benefits associated with the project, including tangible benefits like revenue increases and intangible benefits like improved customer satisfaction.
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Assign a monetary value to each cost and benefit.
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Calculate the net present value by subtracting the total costs from the total benefits.
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Businesses use cost-benefit analysis to make informed decisions about potential projects or investments.
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Government agencies use cost-benefit analysis to evaluate the potential impact of policies or programs.
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Non-profit organizations use cost-benefit analysis to determine the most effective use of limited resources.
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Individuals can also use cost-benefit analysis to evaluate personal decisions, such as major purchases or career choices.
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Cost-benefit analysis is a process used to evaluate the potential risks and benefits of a decision or project.
Organizations or individuals undertaking a project or decision that may have significant implications.
By identifying all costs and benefits associated with the decision or project and quantifying them to determine the net value.
To help decision-makers make informed choices by weighing the potential risks and benefits of a course of action.
All costs, both direct and indirect, and all benefits, both tangible and intangible, must be included in the analysis.
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