Austroads Guide to Project Evaluation | My Assignment Tutor

CVE80003 Transport Economics Component Assignment:(2021)In this assignment, students are (individually) required to carefully study Example 1:Flood Mitigation (Section 3.1 of Part 8 of the Austroads Guide to Project Evaluation),posted on Canvas. Also, carefully study the material described in Sections 1 and 2 ofPart 8 of the Austroads Guide to Project Evaluation setting out the steps to befollowed in cost benefit analysis (see also guidance on this provided in the AustralianTransport Assessment & Planning (ATAP) Guidelines & Infrastructure Australiaassessment framework and business case templates referred to in the links below).When you are familiar with the information provided in Part 8 on the project underconsideration, you need to refer to the spreadsheet Example also referred to in Part8 of the Austroads Guide (Excel file also provided and also posted on the BlackBoard for this Subject and assignment),Students are required to use the information provided in Part 8 of the GPE and theinputs and results contained in the Excel template to answer the questions relating tothe assignment (see specific tasks for the assignment). Particular attention should bepaid to interpretation of results, recommendations and changes to therecommendations that occur due to changes in the inputs. Results should also bepresented graphically. The Excel spreadsheet is also to be used to perform requiredcalculations reflecting sensitivity testing stipulated for this assignment, and thechanges to the results are also to be included in the report, including reasons whythe changes have occurred. Students are also required to save each of thesensitivity tests to separate worksheets in the spreadsheet and submit the MSExcel spreadsheet and answers together with the MS Word report on theirwork to Canvas.All students must complete and submit this assignment individually. Assessment ofthe assignment will be based on clarity and understanding of all inputs used, outputsobtained and interpretation of the results. Please ask questions if unclear.Relevant links for CBA:Australian Transport Assessment & Planning Guidelines:https://www.atap.gov.au/tools-techniques/cost-benefit-analysis/indexhttps://www.atap.gov.au/framework/options-generation-assessment/indexhttps://www.atap.gov.au/framework/business-cases/indexInfrastructure Australia Assessment Framework: (checklists and templates, esp.CBA sections)https://www.infrastructureaustralia.gov.au/sites/default/files/2019-08/2018%20Assessment%20Framework.pdfSpecific tasks for the assignmentThe following specific tasks must be addressed in the assignment:1. How is the problem of flooding approached from an engineering point of view,what data are required?2. Using the guidance material setting out the steps for undertaking a CBA andrelating it to the flood mitigation example, outline the key components of theinitial analysis contained in the spreadsheet, i.e. problem, options (base case& project case), parameters, impacts (costs and benefits)?3. What are the initial results (CBA indicators) obtained (i.e. NPV, BCR …) forthe project contained in the spreadsheet? Present them using tables andgraphs and interpret the results of the project.4. Describe the decision context, the decision taken and why.Then, using the available Excel spreadsheet, undertake the following sensitivityanalysis experiments:1. Decrease the projected growth in vehicle traffic by 25%;2. Increase the mode share of LCV to 10%, and HV to 20%;3. Increase the capital cost of the project for Option 2 by 30% and decrease thecapital cost of Option 3 by 30%;4. Use a discount rate of 10%.For each sensitivity test, compare and discuss the variations in the results and theimplications for the project. You need to describe what each sensitivity result showscompared to the initial results of the CBA, and explain how the CBA analysis worksin producing each of the sensitivity test results.Each step of your assignment, from the definition of the problem to obtaining resultsand sensitivity testing, needs to be clearly documented in your assignment report,which must accompany your Excel spreadsheet outputs.All students must complete and submit this assignment individually. Assessment ofthe assignments will be based on clarity and understanding of all inputs used andoutputs obtained. Please ask questions if unclear.