ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Present Value (NPV)
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Benefit-Cost Ratio
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Cost Effectiveness Analysis
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Discount Rate
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Detailed explanation-1: -Net Present Value and Benefit-Cost Ratio are the two most common methods of doing a cost-benefit analysis. The NPV model chooses the project with the highest NPV. The benefit-cost ratio model chooses the project with the highest benefit-cost ratio.
Detailed explanation-2: -The social discount rate used in cost-benefit analysis (CBA) is an interest rate applied to benefits and costs that are expected to occur in the future in order to convert them into a present value. This conversion is done to ascertain what those benefits and costs are worth today.
Detailed explanation-3: -What is cost-benefit analysis? Cost-benefit analysis is a way to compare the costs and benefits of an intervention, where both are expressed in monetary units. idea icon. Both CBA and cost-effectiveness analysis (CEA) include health outcomes.
Detailed explanation-4: -Build a framework. First, create a framework that lays out the goals of your analysis, your current situation, and the scope of what your analysis will include. List and categorize costs and benefits. Estimate values. Analyze costs vs. Make recommendations. 10-Nov-2022