Perform a benefitcost analysis for Jasper National Park  Chapter 10
In this exercise, you will perform a benefitcost analysis for a GIS implementation in Jasper National Park over a sevenyear period. All numbers used in the exercise are taken from the Final GIS User Needs Analysis and Implementation Strategy for the park. 
Step 1  Identify costs by year 
 If your computer is connected to a printer, print this exercise so that you can use the blank tables and graphs that are provided with the exercise. If you do not have access to a printer, sketch the tables and graphs on a piece of paper. Below are the results of Jasper National Park's total costs for their sevenyear planning period. The costs above are in nondiscounted amounts. Use a discount rate of 7 percent to calculate discounted costs to the base year of 1995. Enter the results in the table below.

Step 2  Calculate benefits by year 
 Below are the results of Jasper National Park's total benefits for their sevenyear planning period. The benefits above are in nondiscounted amounts. Use a discount rate of 7 percent to calculate discounted benefits to the base year of 1995. Enter the results in the table below.

Step 3  Create a graph to compare benefits and costs 
 Using the blank graph below, take the results from steps 1 and 2 and manually create a line graph that compares discounted benefits and costs over the planning period. When does the crossover point to a positive cash flow occur? Answer The crossover point occurs in 1997.

Step 4  Calculate cumulative benefits and costs 
 Calculate the cumulative benefits and costs for each year. Enter the results into the table below.

Step 5  Create a chart to compare cumulative benefits and costs 
 Use the results from step 4 to manually create a bar chart that compares cumulative benefits and costs over the planning period. Graph the results within the table below.
When will the cumulative benefits begin to exceed the cumulative costs? Answer The cumulative benefits will begin to exceed the cumulative costs in 1999.

Step 6  Calculate the cumulative benefit to cost ratio 
 Use the results from step 4 to calculate the cumulative benefit to cost ratio for each year. Enter the results into the table below.
What is the discounted benefit to cost ratio over seven years? Answer The discounted benefit to cost ratio is 3.11:1. Does this indicate that GIS at Jasper National Park is an appropriate investment? Answer Yes, the benefit to cost ratio indicates that investing in a GIS system at Jasper National Park is appropriate. The system's benefits will outweigh the costs. 