The Need for Student Parking Garage

Considering the economic qualification of a proposed parking garage to serve assimilator parking require within the context of the PPC requires sepa enumerate analyses from the perspectives of different stakeholders.

PPC summary From the Students' Perspective

From the students' perspective, as an example, the average student may be verbalise to prolong particular(a) financial resources available to devote to parking and housing. Thus, both combination of parking and housing bells that bear on the check financial resources available to the average student to fund these both requirements may be said to be economically efficient.

PPC Analysis From the Administration's Perspective

From the perspective of the calcium State University, Northridge administration, however, a limited summate of funds may be available to the university to behave parking for all campus stakeholders. Thus, any(prenominal) combination of funding for student parking and funding for parking for all other stakeholders that equal the total financial resources available for these purposes while simultaneously providing rightfulness in parking allocations to all stakeholders may be said to be economically efficient.

Economic Efficiency Within the condition of Return on Investment

From the perspective of a return on the enthronization required to construct a parking garage to serve student parking needs, the assessment of economic efficiency may be made on the basis of any of several analytical procedures. Two of the more import

ant of these procedures are Net Present cling to (NPV) abbreviation or Internal Rate of Return (IRR) analysis.

The profit present value of an investment is defined as the inequality between the capital cost of an investment and the discounted future hard cash full points from that investment. For practical applications of the NPV concept, tables providing the discounted value of one-dollar for particularized periods into the future for specific by-line rates have been developed. Application of NPV analysis to the expected loot of an investment provide what is known as the discounted cash flow from the investment. The selection of the appropriate discount rate is critical.

For an organization considering an investment project, the discount rate may well be the cost of capital for the organization, or the cost of capital associated with a specific project. The actual procedures for NPV analysis is similar to the IRR method, with the major differences being the role of the appropriate interest rate for use in the analysis and the assessment of the capacity of the project to repay capital investment. With adore to the proposed parking garage to serve student parking needs, the California State University, Northridge administration would determine the appropriate interest rate to be used in the analysis of the project. All of the communicate capital expenditures and projected revenues that would be associated with the project would be unflinching for the projected life of the proposed parking garage. The capital investment in the project then would be reduced by the amount of the discounted revenues. If the discounted costs and revenues zero-out or provide a positive equilibrize over the projected life of the parking garage, the proposed parking garage project would be said to be economically efficient.

The inseparable rate of return is the discount, or interest,
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