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In this exercise, you will perform a benefit-cost analysis for a GIS implementation in Jasper National Park over a seven-year 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 seven-year planning period.

The costs above are in non-discounted 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 seven-year planning period.

The benefits above are in non-discounted 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.

Question When does the crossover point to a positive cash flow occur?
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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.



Question When will the cumulative benefits begin to exceed the cumulative costs?
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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.



Question What is the discounted benefit to cost ratio over seven years?
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Question Does this indicate that GIS at Jasper National Park is an appropriate investment?
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