DOI: 10.5176/2010-4804_2.1.160
Authors: Nantarat Tangvitoontham, Papusson Chaiwat
Abstract:
This paper purposes to estimate costs and benefits of railway system development from inland container depot, Ladkrabang, Bangkok to international port, Chonburi, by using Cost-Benefit Analysis Approach (CBA). The approach can provides support for informed judgment and decision making to the merit of the project development. Additionally, the evaluation criteria can be presented in three traditional forms: Net Present Value (NPV), Benefit-Cost Ratio (B/C ratio) and Economic Internal Rate of Return (EIRR), in order to evaluating the value of the project. The study defines all costs and benefits. Accordingly, the net present value (NPV) of the project is 1,672.618 million baht. Economic Internal Rate of Return (EIRR) equals 23.10{6e6090cdd558c53a8bc18225ef4499fead9160abd3419ad4f137e902b483c465} and benefit-cost ratio (B/C) is 2.04 time. The results indicate that the railway system development is worth for State Railway of Thailand to invest. Furthermore, the sensitivity analysis shows that the project is worthiness even any unexpected circumstances will be happened.
Keywords: Cost benefit analysis; project evaluation
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