Ravensthorpe Cultural Precinct
Cost Benefit Analysis
Shire of Ravensthorpe | 2019
- Cost Benefit Analysis
- Economic Impact Assessment
- Social and Economic and Benefit Assessment
- Strategic Alignment
Pracsys was engaged by the Shire of Ravensthorpe to undertake a cost benefit analysis and quantify the economic and social impacts of a proposed Cultural Precinct development. This analysis was required to provide evidence-based justification for capital expenditure and to underpin the development of a business case supporting a Building Better Regions Fund (BBRF) grant submission.
Our analysis identified the combined social and economic value created through the project over a 20-year period. We conducted research and undertook financial modelling, monetising the social impacts based on literature review and our library of financial proxies. The Net Present Value (NPV) and Benefit Cost Ratio (BCR) of the project were derived to determine the total value of output created by the project.
We delivered a cost benefit analysis as an evidence-base for social benefit, economic benefit and value for money requirements of the Building Better Regions Fund. Our analysis demonstrated that every dollar invested in the project generated $3.69 of economic and social benefits to the wider community. The submission was successful and the project was awarded $5.3 million in federal funding.