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Cost-Benefit Analysis of Three Selected FWPA

Cost-Benefit Analysis of Three Selected FWPA

This project undertook a Cost-Benefit Analysis of three randomly selected FWPA-funded research projects. They were assessed against three investment criteria: Net Present Value (NPV), Benefit Cost Ratio (BCR) and the Modified Internal Rate of Return (MIRR). 

The three research projects analysed were: PNA011-0708 Contemporary sound and fire rated timber framed construction practices for low rise building; PN06.1039 Industry standard recycled timber; and PNC220-1011 Utility of molecular breeding in forestry. 

All three projects had positive NPVs and MIRRs, which indicates positive economic impacts. The Benefit Cost Ratio (i.e. the dollar benefit to industry for every dollar invested in the research) for the projects ranged from $7.17 to $14.54 to $44. 

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