Business Case for the SunShine CoaSt airport Master Plan

Results and discussion
The overall range of economic indicators with transfer assumptions (range 25% - 75%) are:
Economic indicators – with transfer assumption 75% Transfer 25% Transfer
Benefit Cost Ratio 2.16 4.88
NPV Net Benefits $297.6m $993.7m
IRR (Economic benefits) 13.44% 20.80%
The midpoint within this range of transfer factors is 50%, which provides the following results:
Economic indicators – with transfer assumption
50% Transfer
Benefit Cost Ratio 3.52
NPV Net Benefits
$645.7m
IRR (Economic benefits) 17.72%
The effect of the transfer assumption on the BCR is demonstrated by the following graph:
7.0
BCR with transfer impact
BCR
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
BCR range
from 2.16 to
4.88
With 100% transfer
impact, BCR is 0.8
due to other benefits
which are not
dependent on the
level of new demand.
0.0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage of benefits transferred from other locations
The monetised costs and benefits with the mid-point 50% transfer impact are shown on the
graph overleaf.
Sunshine Coast Airport
PricewaterhouseCoopers 43