Benefit Cost Analysis (BCA) of the MLA Majority Market Programs

Summary

This project analysed the benefits and costs of investment by MLA, AWI and state agencies in phase II of the MLA Majority Markets Program (MMP). The investment period included the three financial years from 2010/2011 to 2012/2013, and the time horizon for future expected benefits was 25 years from the final year of investment.  
The analysis revealed that using a 7% discount rate, over a 25 year time horizon a B:C ratio of 5.0 was generated as result of investment in the MMP as a whole. The B:C ratios for the MMfS and MBfP programs over the same time horizon were 5.6 and 4.7 respectively. Over a 20 year time horizon the B:C for the MMP was 4.7, and for the MMfS and MBfP programs B:C ratio was 5.3 and 4.4 respectively. The NPV generated as a result of investment in the MMP over a 25 year time horizon was $35.45 million, with $13.98 million generated from MMfS and $21.47 million from MBfP. Over a 20 year time horizon the MMP NPV was $32.98 million, comprising $13.03 million from MMfS and $19.95 million from MBfP.