CBA Builder Exercises and Worksheets
This page contains a number of exercises and worksheets for use in teaching and learning CBA. The page is split into three sections, (1) CBA Builder Simple Worksheets; (2) CBA Builder Advanced Worksheets, and; (3) CBA Builder Exercises. (1) and (2) contain worksheets for use with the CBA Builder Simple and Advanced Excel Templates. (3) comprises a number of more general exercises which focus on various aspects of CBA.
CBA Builder Simple Worksheets
Worksheet 1: Enterprise Training Centre
You are required to perform a project appraisal for an enterprise training centre (ETC) which is being considered by a City Council. The ETC will be constructed on the site of a derelict stable block which has become a local problem associated with anti-social behaviour. The idea of the ETC is therefore popular in the local area, and with the City Council, as it should reduce anti-social behaviour and will be used to train local young people and help them to start up their own businesses with the guidance of skilled staff at the centre.
Worksheet 2: Football Stadium
You are required to perform a project appraisal for a new football stadium which is being considered by Danchester FC. The new stadium will be constructed on a new clear out-of-town site. The idea of the new stadium is therefore popular with the city council of Danchester who see the movement of the stadium to an out-of-town location as a good way of reducing traffic congestion in the city. Danchester FC are considering two possible options for their new stadium. Option 1 is a smaller stadium, with low costs. Meanwhile, option 2 requires a much greater investment but provides a much bigger stadium capable of holding larger crowds, and provides a number of additional facilities which will allow for a higher ticket price to be charged.
Worksheet 3: Internationalization of Tata Motors in Europe
You are employed as international advisor for Tata Motors. Tata Motors, an upcoming emerging multinational from India’s largest conglomerate Tata, is planning to launch its new product Tata Nano in Europe. Tata Nano is the world’s cheapest car with the market price of just £1,277 in India, but it will not be that cheap in Europe. The estimated price in Europe will be approximately £3,500, which is almost half of the average cost of small family cars available in the European market. Hence, Tata Motors is very optimistic with its plans to launch the car in the European market.
Worksheet 4: Redevelopment Project
You are required to perform a project appraisal which considers three options for a redevelopment project of a derelict factory site in a city centre, which has become a local problem associated with anti-social behaviour. In your group you need to consider each of the options below and order them as first, second and third choice depending on your findings. The project options all have associated costs and benefits which need to be considered in appraising the options. There are also a number of further considerations which you will have to account for in your final appraisal (and choice of project).
CBA Builder Advanced Worksheets
Worksheet 1: New Trunk Road
You are required to perform a project appraisal of a proposed new trunk road. The road will be a dual lane by-pass around a town centre in Cheshire. The project is estimated to improve journey time through the county and reduce congestion problems in the town. There are some concerns which have been raised by local inhabitants including the increased noise and pollution caused by the new road, and the loss of an area of parkland which the road will cut through. The county council and UK Government’s Department for Transport (DfT) require an appraisal of the project accounting for time-savings, loss of natural environment and other factors.
Worksheet 2: Oil Extraction
You are required to perform a project appraisal of a proposed new oil drilling and extraction platform in the North West of Scotland. The oil platform is estimated to generate substantial revenues, after initial construction and drillings costs have passed. There are, however, a number of key concerns and risks involved. As the oil platform will be extracting deep sea oil there is a risk of environmental damage if any damage occurs to the well which will be some 2000ft under sea level. There is also the risk of explosions on the oil platform, although both of these potential catastrophic situations are highly unlikely to occur.
Current Version: v1.0 File Format: pdf File Size: 91kb
CBA Builder Exercises
CBA Builder Exercise 1: Introduction to CBA
CBA Builder Exercise 2: Discounting
Current Version: v1.0 File Format: pdf File Size: 65kb
CBA Builder Exercise 3: London Congestion Charge (LCC)
Current Version: v1.0 File Format: pdf File Size: 149kb
CBA Builder Exercise 4: Assessing CBA Options
Current Version: v1.0 File Format: pdf File Size: 108kb
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This resource was created by Dr Dan Wheatley. The project was funded by the Economics Network and the Centre for Education in the Built Environment (CEBE) as part of the Teaching and Learning Development Projects 2010/11.