With each project we have a desired end point Wholesale Travis Kelce Jersey , a definition of success. We spend time, and energy, creating solutions and plans to solve a problem or get to a desired end point; however we may not go ahead with plans because they are not simply financially viable or just too expensive.
Cost Benefit Analysis is a simple and widely used technique for deciding whether to make a change or to go ahead with a project.
As the name suggests, simply add up the value of the benefits of a course of action Wholesale Justin Houston Jersey , and subtract all the costs associated with it. This calculation may be dollar focussed or undertaken on a more qualitative variation.
Costs are either one-off, i.e. a single expense, or may be incurred over a period of time eg weekly monthly etc. or perhaps could be a combination of both.
The Benefits of a course of action are most often received over a period of time.
We build this effect of time into our analysis by calculating a pay-back period. This is the time it takes for the benefits of a project to repay, to the investor or business Wholesale Kareem Hunt Jersey , the full cost of implementing the project.
In business, companies usually look for pay-back over a specified period of time - e.g. three years being quite normal. This payback period is usually calculated using complicated mathematical and financial formulae, using interest rates and CPI etc and is often described as a percentage return on investment per year.
Simplistically for our purposes let's say it takes 3 years to pay back the cost of implementation of a project, at zero interest rate Wholesale Patrick Mahomes II Jersey , and CPI is also zero. (What a stagnant world that would be) The percentage return per year is therefore 100 divided by 3years equalling 33.33%.
Some businesses have a project hurdle rate of 30%. That means they will not invest in the project unless it returns a better rate then 30%. I.e. The project must pay for itself in less than 3 years.
In its simple form, costbenefit analysis is carried out using only financial costs and financial benefits.
For example, a simple costbenefit analysis of a new shopping centre would measure the cost of building the centre, and subtract this from the economic benefit to the developer of increased rental income. It would not measure either the cost of any environmental damage or the benefit to local consumers of convenient and easier travel to the shops.
A more sophisticated approach to costbenefit analysis is to try to put a financial value on these intangible costs and benefits. This can be highly subjective.
For example; Is an historic building is worth only its material cost if it is in disrepair? Is it worth the value of the land it is sitting on? Or is it worth millions due to the history located with the building Wholesale Tyreek Hill Jersey , who lived there, what decisions were made, and who was borndied there?
Alternatively what is the $ value of putting fresh plants in an air-conditioned office?
These are questions that managers and businesspolitical leaders have to answer, and be able to justify their answers to others.
The version of costbenefit analysis we covered here is simple. As noted though Wholesale Darwin Thompson Jersey , where large sums of money are involved, eg mining projects, oil refineries, and large property developments etc project evaluation is a specialisation on its own.
Conservation and Your Holiday Destination Published: 28.10.2008 | Author: icampbell | Category: Air Travel Wholesale Khalen Saunders Jersey , Destinations, Travel & Leisure
Environmental concerns now affect almost every aspect of our lives and travel is no different. In recent years the term ‘eco-tourism’ has come to the fore and is now commonly used when talking about booking holidays right across the world. Back in 2002 the United Nations announced that particular year was to be the International Year of Eco-tourism. Simply put, Eco-tourism is holidaying with a conscience, but the many facets around it deserve to be looked at in more detail.
Protecting natural environments is one of the main areas where Eco-tourism can make a real difference. Tourism on a mass scale can have a very negative impact on areas with delicately balanced habitats and exploiting these for profit runs the very real risk of them not being around for future generations to enjoy.
As habitats suffer through the building of new properties Wholesale Juan Thornhill Jersey , environmental damage and the displacement of local people through increased levels of outside visitors, it follows that wildlife and species in the affected area will be hit hard too. Conserving endangered animals and plants is one of the most high profile aspects and played a big part in the development of Eco-tourism in the late 1980鈥檚.
Eco-tourism is also about making a real difference to local people鈥檚 lives. This can be done in a variety of ways. Many tour operators will offer you the chance to get a feel for what the area is really like by residing in the homes of the native population. This not only benefits you as a tourist by gaining an eye opening insight into what life is really like for other people but it also enhances the community as well by providing funds which can be used to help preserve their current way of life.
Depending on the type of holiday you choose there could be the opportunity for you to have an input into local projects and work with the locals to help create a better and more sustainable environment for themselves. This can be a very enriching experience and give you a real sense of achievement when you see the difference you鈥檝e been able to make.
Even staying in eco-friendly hotels can make a significant impact on the environment surrounding the area you choose to stay in. There are a number of things they can do such as changing towels and bed clothes less often, reducing the temperature of their laundry water, buying recycled products and ensuring that their own waste is recycled wherever possible.