GROUP ASSIGNMENT topic 6 cost benefit analysis for a national park

National Economics University
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GROUP ASSIGNMENT
Topic 6: Cost - Benefit Analysis For A National Park

Group member

1.
2.
3.
4.
5.
6.
7.
8.
9.

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 Đơng
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 1. Eco green park
I. Concept:
II. Identify Cost-benefit associated with the project
III. Valuing impacts

2

2
3
4

Option 2. Creative Park
I. Concept:
II. Identify Cost-benefit associated with the project
III. Valuing impacts

9
9
10
11

Option 3. Sport Park
I. Concept:
II. Identify Cost-benefit associated with the project
III. Valuing impacts

15
15
17
17

Option 4. Astronomical Park
I. Concept
II. Identify Cost-benefit associated with the project
III. Valuing impacts

21

21
23
23

Option 1. 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

1


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

2

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

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

Non-market
price

3


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)

1

Vending machine

3600

2

Events, exhibition

1200

3

Parking

536.55

4

Public toilet

219

5

Bicycle rental service

730

6

Grass skiing service

1314

7

Children’s playground (sculpture painting,
float home...)
3650
Total

11249.55

4


Table 1.3. Investment capital
Cost

(million
vnd)

No Category

1 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)

2 Equipment cost

800

Project
3 management cost

1,000

Construction
Investment
4 Consultancy Expense

1,000

5 Other cost

1,000 including labour cost

Contingency
6 expenses

800

Compensation
7 expense

1,000

Total

8,100 100% state capital
Table 1.4.1. Investment capital (labor cost)

Period

No Position

Before
1
operation 2
(from year
1 to year 3)
After the 3
operation
(from year

4
4 to year
20)
5
6

Wage
person
month
(million
Number VND)

per Wage per
per person
per year
(million
VND)

Wage per
year
(million
VND)

Construction
1
Supervisor

9

108

108

Worker

15

1.5

18

270

Total

16

10.5

126

378

Manager

1

12

144

144

Sanitation
worker

3

6

72

216

Security
guard

4

0

0

Gardener

4

72

288

6

5


7

Maintenance
staff
2

7

84

168

8

Playground
staff

2

6

72

144

9

Bicycle rental
service staff 1

6

72

72

Total

43

516

1032

17

Table 1.4.2. Investment capital (maintenance cost)
No

Category

Cost (million
vnd)

1

Parking area

150

2

Gardening

900

3

Material facility (include lighting
equipment, watering
equipment, CCTV, fence,
vending machine...)
750

4

Greenhouse

300

5

Road

300

6

Waste treatment

300

7

Canal cleaning

300

Total

3000

Note

the government
subsidize 30% in
total

6


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 4

Revenue

11249.55

11249.55

Labor cost

378

378

Greenhouse
construction

300

286.36

->

Construction
cost

2500

2486.36

-> Investment
From
8100
Benefit year 1 to capital
year 3
Total
8478

8036.36

Labor cost

Cost

Maintenance
From
cost
year 4 to
year 20 Total

8329.16

1032

825.6

3000

2100

4032

2925.6

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

2

7


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
Cost

Annual
One time
(million VND) (million VND)

Method

Contingent valuation
Temporary affect the (WTA survey) - how
living environment much are people
of surrounding
willing to accept for
people (dust, noise the temporary
pollution)
dust/noise pollution 3

Table 1. 7. Total Cost and Benefit of the Project (Unit: million VND)
Year
1
Benefit 0,00

2
0,00

3
0,00

4
11782

5
11782

6
11782

7
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

0 100.00

0

0

0 100.00

0.00

1

0 102.00

0

1

8481 102.00

8314.71

2

0 104.04

0

2

8481 104.04

8151.67

3

0 106.12

0

3

8481 106.12

7991.84

4

11781.95 108.24

10884.70

4

2926 108.24

2702.80

5

11781.95 110.41

10671.28

5

2926 110.41

2649.81

6

11781.95 112.62

10462.03

6

2926 112.62

2597.85

7

11781.95 114.87

10256.90

7

2926 114.87

2546.91

8

11781.95 117.17

10055.78

8

2926

117.17

2496.97

9

11781.95 119.51

9858.61

9

2926

119.51

2448.01

10

11781.95 121.90

9665.30

10

2926 121.90

2400.01

8


11

11781.95 124.34

9475.79

11

2926 124.34

2352.95

12

11781.95 126.82

9289.99

12

2926 126.82

2306.82

13

11781.95 129.36

9107.83

13

2926 129.36

2261.58

14

11781.95 131.95

8929.25

14

2926 131.95

2217.24

15

11781.95 134.59

8754.16

15

2926 134.59

2173.76

16

11781.95 137.28

8582.51

16

2926 137.28

2131.14

17

11781.95 140.02

8414.23

17

2926 140.02

2089.35

18

11781.95 142.82

8249.24

18

2926 142.82

2048.39

19

11781.95 145.68

8087.49

19

2926 145.68

2008.22

20

11781.95 148.59

7928.91

20

2926 148.59

1968.84

Table 1.9 Net Present value (Unit: million VND)
Year

1

Cash flow

2

3

4

5

6

7

...

20

-8314.71

-8151.67

-7991.84

8181.90

8021.47

7864.19

7709.99

5960.07

0.96

0.92

0.89

0.85

0.82

0.79

0.76

0.46

PV

-7994.91

-7536.68

-7104.71

6993.92

6593.06

6215.18

5858.96

2720.10

Accumul
ative

-7994.91

-15531.59

-22636.30

-15642.38 -9049.32

-2834.14

3024.82

54650.76

Discount
rate

NPV = 54650,76 (million VND)
NPV>0

9


Option 2. Creative Park
I. Concept:
A creative park where artworks are exhibited.
Citizens are probably familiar with the common type of parks that are

spacious and filled with trees as well as flowers. This common design is
widely popular since it serves the surrounding habitants’ need for
exercising and fresh air which are the top priorities of visitors according to
a study on urban public parks of Leed university. However, such
infrastructures are becoming a norm of every metropolis, and citizens of
the modern age are subtly demanding a form of entertainment and
relaxation of a higher level. In the meantime, never before witnessed a
more impactful movement of artistic creativity in the community. For that
reason, The creative park will be a perfect solution to the matter as it
provides a public space for artists and citizens to enjoys the creative works.
Since there is already a tobacco factory, some minor adjustments to the
existing facility are enough. This will save a great deal of public finance as
no large-scale construction is needed.
Creative park design: Unlike other parks, this infrastructure is designed
distinctively in a very modern way under the cooperation of many artists
and architects. The main theme will be the city of the future which focuses
on the special design of included facilities and the exhibition of artwork
within the area of the park.
Picture 2.1. Creative Park

In the middle of the park, the used-to-be factory will be converted to an
exhibition building of which the main purpose is to exhibit artworks.
Main services of this park includes:
-

Parking: This service will require payment
Public space: walk, playing, chilling area
Exhibition: artworks, music

10

-

Cafe: The cafe is installed in the same building as the exhibition so
visitors can enjoy the artwork while chilling
An outdoor movie theater (available at night only)

II. Identify Cost-benefit associated with the project
Table 2.1. Cost-benefit analysis
Primary benefit

Primary cost

With market
price

Non-market
price

With market
price

Non-market
price

- Revenue from
parking service
- Revenue from
the cafe shop

- Revenue from
the movie
theater

- Physical and
mental
contentment of
surrounding
inhabitants
- A great
motivation to
artistic activities
of the
community

- Construction
cost
- Maintenance
cost
- Management
and operation
cost

- Negative
impact on the
surroundings
during the
construction
(Temporary air
pollution)

III. Valuing impacts
1. Description
An enterprise with 40% foreign capital has a project to build a creative park
where art exhibitions take place
The construction phase starts in the first 3 years and the project goes into
operation from year 4 to year 15
Project revenue comes from:
- Coffee shop: on average, 250 bills are sold per day, each bill is 70,000
VND
- Cinema: on average, 200 tickets are sold per day, the fixed price of
each ticket is 100,000 VND
- Parking area: 150 vehicles per day on average, of which cars account
for 40%. Tickets for motorbikes and cars are 5,000 VND and 50,000
VND respectively
Profit tax is 25%, resource tax is 7% of the revenue.
Construction investment cost in the first 3 years is 500 million VND/year
The annual operating cost when the project is put into operation is 1 billion
VND/year
In the first 3 years of construction, the project hires 100 workers and from
the 4th year onwards hires another 25 people

11


-

The unemployment rate is 20% and all unemployed people think
their value of rest is 50 million VND/year
- The average salary per worker is 100 million VND/year.

Assume that 1 year has 360 days
Table 2.2. Project financial information
Foreign capital 40%
Coffee shop/ per
day
250

bills

0,07

million VND per bill

Cinema/ per day 200
Parking
area/ 40%

tickets
cars

0,1
0,05

million VND per ticket
million VND per ticket

per day

60%

motorbikes 0,005 million VND per ticket

Profit tax

25%

of the profit
of
the
revenue

Resource tax
7%
Investment cost in first 3 year
from year 4
Operating cost to year 15

Labor

500

million VND per year

1000 million VND per year

in first 3 year

100

people

from year 4
to year 15

25

people

Unemploym
ent rate

20%

Value of rest

50

million VND per year

Average
salary
per
people

100

million VND per year

360

days

1 year

2. Valuation
Table 2.3. The benefits and costs of the project from both private and social
perspectives
Private
Year
Item
Social point view
pointview
Bene Year 4-15
Revenue
14742
8845,2
fit
Resource tax
0
412,776
Profit tax

0

207,306

12


Year 1-3

Cost

Year 4-15

Total (per year)

14742

9465,282

Labor cost

10000

9000

Investment
capital

500

500

Total (per year)

10500

9500

Labor cost

12500

11250

Operation cost

1000

1000

Resource tax

412,776

0

Profit tax

207,306

0

Total (per year)

14120,082

12250

Net profit = Revenue - Labor cost - Operation cost - Resource tax =
829,224
Table 2.4. The benefit and cost of the nonmarket price
Benefit

Method

Valued
VND/1ha
park
Annual

Physical and
mental
contentment of
surrounding
inhabitants

Contingent valuation method
(survey)

780

A great motivation Cost of avoidance (value by
to artistic activities exhibition organization costs)
of the community

200

by

of

million
creative

One time

Beautiful view

Hedonic pricing method
(Increasing value of the
surrounding lands)

650

Fresh air

Cost of avoidance (Increasing air
quality to the surroundings due
to trees placement in
comparison with that of the
tobacco factory)

385

Total benefits

980

1035

13


Cost

Method

Valued
VND/1ha
park

by
of

Annual
Temporary air
pollution

Year

1

Contingent valuation method
(willingness to accept
compensation to live in an
environment near a
construction site)

million

creative

Onetime

10

2

3

4

5

Benefit 0,00

0,00

0,00

15808,25

15808,25 15808,25 15808,25 ...

15808,25

Cost

10510

10510 14120,08

14120,08 14120,08 14120,08 ...

14120,08

10510

Year

Nominal
benefit

CPI

Real
benefit

6

Year

7

...

Nominal
CPI
cost

Real
cost

0

0,00

100,00 0,00

0

1

0,00

102,00 0,00

1

10510,00 102,00 10303,92

2

0,00

104,04 0,00

2

10510,00 104,04 10101,88

3

0,00

106,12

3

10510,00

4

15808,25

108,24 14604,38

4

14120,08 108,24 13044,77

5

15808,25

110,41

14318,02

5

14120,08

110,41

12788,99

6

15808,25

112,62

14037,27

6

14120,08

112,62

12538,23

7

15808,25

114,87 13762,03

7

14120,08

114,87 12292,38

8

15808,25

117,17

13492,19

8

14120,08

117,17

12051,35

9

15808,25

119,51

13227,64

9

14120,08

119,51

11815,05

10

15808,25

121,90

12968,27

10

14120,08

121,90

11583,39

11

15808,25

124,34 12713,99

11

14120,08

124,34 11356,26

12

15808,25

126,82 12464,70

12

14120,08

126,82 11133,59

13

15808,25

129,36 12220,29

13

14120,08

129,36 10915,28

14

15808,25

131,95

11980,68

14

14120,08

131,95

15

15808,25

134,59 11745,76

15

14120,08

134,59 10491,43

0,00

0,00

15

100,00 0,00

106,12

9903,81

10701,26

14


Year

1

2

Cash flow

-10303,92 -10101,88

3

4

5

6

7

...

15

-9903,81

1559,61

1529,03

1499,04

1469,65

...

1254,33

Discount rate 0,96

0,92

0,89

0,85

0,82

0,79

0,76

...

0,56

PV

-9339,76

-8804,45

1333,16

1256,75

1184,72

1116,81

...

696,49

-26718,67

-25461,92 -24277,20 -23160,39 ...

-9907,62

Accumulative -9907,62

-19247,38 -28051,83

-16247,10

NPV = -16247,10 (million VND)
NPV<0

15


Option 3. 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
+ 2 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

-

Offer places to Maintenance
Provide
jobs
for do 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

air

Operation cost

III. Valuing impacts
1. 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 1 to year 3, operating phase
starts from year 4 to year 20.
+ Construction investment cost in the first 3 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


- Salvage is estimated at 0,5 billion
- Profit tax is 20% of the profit
- In the first 3 years, 100 labors are hired for the project, and from year
4->20, 100 more laborers are recruited to operate the park.
+ The unemployment rate is 50% (unemployment workers are
receiving unemployment benefits)
+ Wage for each worker is 60 000 000 VND/ year
- Assume that 1 year has 360 days
2. Valuation: (For Detailed information, click here)
Table 3.2. The Project Revenue (Unit: thousand VND)

Number Item

Unit

Quantity

Price
(thousand
VND)

Amount
(thousand
VND)

Ticket

150

50

7500

1

Kayak
rent

2

Artificial
mountain
climbing
fee
Ticket

200

100

20000

3

Trampolin
e
jumping
fee
Ticket

150

100

15000

4

Gym

150

50

7500

Turn
(Motorbike
)
70

5

350

Turn (Car) 30

30

900

Hour

5

Parking
fee

6

Tennis
court rent Turn

30

50

1500

7

Service
cost

20

50

1000

Turn

TOTAL PER DAY

51250

Table 3.3. The benefits and costs of the project from both private and social
perspectives (Unit: thousand VND)
Year

Item

Private

Social pointview

19


Pointview

Benefit

Year 4->20

Year 1-3

Cost
Unit:
VND

Year 4->20

Revenue

18450000

0

Profit tax

0

1279000

Total

18450000

1279000

Labor cost

6000000

3000000

Investment
Capital

1500000

1500000

Total

7500000

4500000

Labor cost

12000000

6000000

Profit tax

1279000

0

Operation
cost

55000

55000

Total

13334000

6055000

Thousand
Net profit

6395000

Table 3.4. Valuing indirect impacts (Unit: million VND)
Benefit

Method

Valued by million VND/1ha of

land
Annual

Hedonic pricing
(increase the value of
the land if the nature
Beautiful scene scene is preserved)

500

Contingent valuation
(WTP survey)

200

Improve
local Contingent valuation
(WTP survey)
people health

100

Entertainment

One time

500
Total Benefit

Cost

300

Method

Valued by million VND/1ha of
land

20


Annual

One time

Contingent valuation
method (willingness to
Temporary air
accept compensation to
pollution
live in an environment
near a construction site)

100

Contingent valuation
method (willingness to
accept compensation to
live in an environment
near a construction site)

Temporary
noise
pollution

50

Total Cost

150

Table 3. 5. Total Cost and Benefit of the Project (Unit: million VND)
Year

1

Benefit 0.00
Cost

2

3

4

5

0.00

0.00

18779.41

18779.41 18779.41

18779.41 ...

18779.41

13334

13334

13334

7550 7550 7550 13334

6

7

13334

...
...

20

Table 3.6 Real Cost and Benefit (Unit: million VND)

Year

Nominal
benefit

CPI

Real
benefit

Year

Nominal
cost
CPI

Real
cost

0

0

100.00

0

0

0

100.00

0.00

1

0

102.00

0

1

7550

102.00

7401.96

2

0

104.04

0

2

7550

104.04

7256.82

3

0

106.12

0

3

7550

106.12

7114.53

4

18779.41

108.24

17349.27

4

13334

108.24

12318.55

5

18779.41

110.41

17009.09

5

13334

110.41

12077.01

6

18779.41

112.62

16675.58

6

13334

112.62

11840.21

7

18779.41

114.87

16348.61

7

13334

114.87

11608.05

8

18779.41

117.17

16028.05

8

13334

117.17

11380.44

9

18779.41

119.51

15713.77

9

13334

119.51

11157.29

10

18779.41

121.90

15405.66

10

13334

121.90

10938.52

11

18779.41

124.34

15103.59

11

13334

124.34

10724.04

12

18779.41

126.82

14807.44

12

13334

126.82

10513.77

21


13

18779.41

129.36

14517.10

13

13334

129.36

10307.62

14

18779.41

131.95

14232.45

14

13334

131.95

10105.51

15

18779.41

134.59

13953.38

15

13334

134.59

9907.36

16

18779.41

137.28

13679.78

16

13334

137.28

9713.10

17

18779.41

140.02

13411.55

17

13334

140.02

9522.64

18

18779.41

142.82

13148.58

18

13334

142.82

9335.93

19

18779.41

145.68

12890.77

19

13334

145.68

9152.87

20

18779.41

148.59

12638.01

20

13334

148.59

8973.40

Table 3.7 Net present value (Unit: million VND)
Year

1

2

3

4

5

6

7

...

Cash flow -7401.96 -7256.82

-7114.53

5030.72

4932.08

4835.37

4740.56 ...

3664.61

Discount
rate
0.96

0.92

0.89

0.85

0.82

0.79

0.76

0.46

PV

-7117.27

-6709.34 -6324.79 4300.28

4053.81

3821.46

3602.43 ...

Accumul
ative
-7117.27

-13826.61 -20151.41 -15851.13

-11797.32

-7975.86 -4373.42 ...

...

20

1672.48
27369.29

NPV = 27369.29 (million VND)
NPV>0

22


Option 4. Astronomical Park
I. Concept
The Astronomical Park has many types of facilities to meet the
recreational needs of the community. Specifically :
- The center of the park is a large lake, in the center of the lake is a statue of
President Ho Chi Minh, a world cultural celebrity, connected by many

bridges so that people can visit and take photos. Surrounding the lake are
statues of other cultural celebrities in the world.
- The park also has an outdoor stage and surrounding seating system,
where many events and activities take place. Profits can be made through
the rental of fairs and exhibitions, thereby maintaining the park's
operation.
Besides, there is also a galaxy square with a simulation model of planets
and astronomical phenomena to help visitors have more knowledge about
science. It is possible to profit through the fact that visitors can hire a tour
guide for a more thorough and in-depth explanation of the history of
astronomy.
- The park also has a large observatory. Visitors can purchase tickets to
have a night out at the park and see the stars in the sky.
The park also has many trees and benches as well as umbrellas for visitors
to rest along the way. In addition, the park also has a play area for children
and exercise equipment so that residents near the park can come and
relax.
Picture 3.2. Sport Park Main Facilities

23


II. Identify Cost-benefit associated with the project
Table 4.1. Identify cost-benefit
Primary Benefits
With market
price

Primary Costs
Non Market

price

With market
price

Non Market
price

Income from
event space
rental cost

Improve the
local people
health

Construction
cost

Temporary air
pollution

Income from the
sale of picnic

Help the
neighbors have
a place to relax
and have fun

Maintenance
cost

Temporary noise
pollution

Help visitors

Management
costs

More people visit

tickets at the
observatory
Income from the
tour guide

Income from

have more

=> more waste

knowledge

=>

about

environmental

astronomy

impact

Labor costs

space rental

24