Public finance – cost and benefits analysis

Don't use plagiarized sources. Get Your Assignment on
Public finance – cost and benefits analysis
Just from $13/Page
Order Now

Cost benefit at the local level often uses a simple tool for calculating potential benefits of a project. It is the simple payback time. That is if a project costs $100,000 to do but will save $25,000 per year, then the simple payback time is 4 years (100,000/25,000). This is not the method Anderson describes in the text, which employs a method to calculate the time value of money: discounting. I have added a PowerPoint to the content area entitled Cost-Benefit Analysis, which reviews this tool again, but the last slide has a project to assess whether or not to proceed. The project is buying new garbage trucks for $400,000 with the estimated annual savings of $90,000; the trucks would last 4 years and would be sold for $100,000. A simple payback analysis would show a payback of 4.4 years (400,000/90,000); however, the residual value of $100,000 was not included; adding that in gives a payback of 3.33 years (400,000-100,000/90,000). Would you make the decision to do this project? Of course, there is a flaw in the simple payback: it does not account for the time value of money. A dollar today is worth more than a dollar 4 years from now.

Also in the Content area is a spreadsheet entitled Discountinggarbage trucks. This spreadsheet has computed the net present value of this proposal using a 7% discount rate; note that it is negative (-$18,861). (Negative numbers are often shown in parentheses in Excel.) With a negative number, you would not recommend doing this project. Since the spreadsheet is set up for you, I would like you to play around with the discount rate until you get the smallest possible positive number next to Net Present Value. Tell me what this number is. Then explain 1) who might want to use a higher discount rate (you should see a negative number) and 2) who might use a lower number than the one you found ( a positive result), and why. That’s it.

For those of you who are new to Excel (I hope you use it, since it is the primary budget and finance tool used at all levels of government), you simply type over the number in the cell next to the one labeled Discount Rate to change the rest of the spreadsheet, particularly the net present value number.

Note: to do this more correctly, you would also have to include an inflation factor in the formula; we will not do so for this exercise.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.


Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.


Admission and Business Papers

With, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.


Editing and Proofreading has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.


Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.