1. Development of a Tropical Island
Cost Benefit Analysis

2. Aims All: An introduction to the case study
Most: All economic decisions have alternatives, with each one there is a cost & a benefit
Some: How to evaluate an economic decision from a cost benefit perspective.

3. An introduction to the case study (reading to learn)
Individually read the case study
Take notes about key points of information
In pairs share your notes
Break your notes into 2 areas:
Benefits of each option
Costs of each option

4. Hotel - $150 Million + $50 Million for every 100 rooms

5. Water Park - $145 Million

6. Bush Walking Trail - $16.5 Million

7. Beach Games - $1.2 Million

8. A Marina (a boat car park) - $115.2 Million

9. A Reef Pontoon - $27.6 Million

10. Environmental Park - $19.5 Million

11. Cost / Benefit Making choices of options for investments
Which option has the most costs?
Which options bring the biggest benefits?
What would be the outcome of choosing / not choosing an investment option?

12. What does the cartoon say?

13. Cost / Benefit Analysis
Option
Cost
Benefit
Downside if not built
Hotel
“Aqua” Park
Island Activities
Beach Games
Marina
Reef Pontoon
Environmental Park
Environmental Protection

14. Cost / Benefit
Which options for investment on Aqua Island would you choose and why?
Think cost / benefit
Fully analyse all options and their costs and benefits.

15. Damage to the Great Barrier Reef
ion/great-barrier-reef-threats/
nment/coral-damage-on-the-great-barrier- reef uzi.html?selectedImage=1