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Select a united states of america government investment project and a private investment project
in the united states of america. For example you may select a bridge, hospital, park or another
government project and determine the benefits and costs of the project. Also select a private
sector project.
After selecting the government and private sector project, you first must write a short review of
them and then express your opinion of why you selected the projects.You must write the possible
benefits for the private sector and for the users in the public sector. Also write the associate costs
for both projects.
Write about why you understand are the primary differences in the cash flows between both
projects.
Solution
Let us select parks for both as a public sector investment project and a private sector investment
project.
Park as a public sector invesment project: I selected park as an example of government sector
project since governments invests a lot of space, money and time in developing and maintaining
a park, whereas theeffective monetary returns from the park are zero.
The benefits from that of the public sector parks are:
1. It has lush greenery in the surroundings.
2. Helps people to walk around, relax and have fun.
3. Helps people to exercise.
4. It serves as a family outing spot.
Costs involved in the project:
1. High Maintenance cost
2. Occupies a lot of commercial land in the central city which when commercialized can earn
revenues.
3. Uses government resources for running the project.
4. Cash flow comes in forms of donations from various entrepreneurs for maintaining the park.
When government invests in constructing and maintaining a park it cannot expect much as
returns as it is done for the well being of the society.
Take for instance the investments in amusement parks which is a private sector projects.
In amusement parks the investment is heavy but the returns are equally high. The cash flow is
consistent in private sector parks. Amusement parks or theme parks are constructed for the sole
aim of generating cash.
When government invests in public sector project, the revenues, if at all generated, goes to the
government directly where as revenues generated in private sector investments will not reach the
government directly, rather revenues will be generated in form of taxes.
Hence the main difference in the cash flows between both projects is the amount of revenue
generated.

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Select a united states of america government investment project and .pdf

  • 1. Select a united states of america government investment project and a private investment project in the united states of america. For example you may select a bridge, hospital, park or another government project and determine the benefits and costs of the project. Also select a private sector project. After selecting the government and private sector project, you first must write a short review of them and then express your opinion of why you selected the projects.You must write the possible benefits for the private sector and for the users in the public sector. Also write the associate costs for both projects. Write about why you understand are the primary differences in the cash flows between both projects. Solution Let us select parks for both as a public sector investment project and a private sector investment project. Park as a public sector invesment project: I selected park as an example of government sector project since governments invests a lot of space, money and time in developing and maintaining a park, whereas theeffective monetary returns from the park are zero. The benefits from that of the public sector parks are: 1. It has lush greenery in the surroundings. 2. Helps people to walk around, relax and have fun. 3. Helps people to exercise. 4. It serves as a family outing spot. Costs involved in the project: 1. High Maintenance cost 2. Occupies a lot of commercial land in the central city which when commercialized can earn revenues. 3. Uses government resources for running the project. 4. Cash flow comes in forms of donations from various entrepreneurs for maintaining the park. When government invests in constructing and maintaining a park it cannot expect much as returns as it is done for the well being of the society. Take for instance the investments in amusement parks which is a private sector projects. In amusement parks the investment is heavy but the returns are equally high. The cash flow is consistent in private sector parks. Amusement parks or theme parks are constructed for the sole aim of generating cash.
  • 2. When government invests in public sector project, the revenues, if at all generated, goes to the government directly where as revenues generated in private sector investments will not reach the government directly, rather revenues will be generated in form of taxes. Hence the main difference in the cash flows between both projects is the amount of revenue generated.