ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Analysis of Strengths (S) and Weaknesses (W)
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Sensitivity Analysis
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Analysis of Distribution Effects and Impact on Poverty
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Risk and Uncertainty Analysis
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Detailed explanation-1: -Cost-benefit analysis allows an individual or organization to evaluate a decision or potential project free of biases. As such, it offers an agnostic and evidence-based evaluation of your options, which can help your business become more data-driven and logical.
Detailed explanation-2: -Limitations of the Cost-Benefit Analysis For very large projects with a long-term time horizon, a cost-benefit analysis might fail to account for important financial concerns such as inflation, interest rates, varying cash flows, and the present value of money.
Detailed explanation-3: -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
Detailed explanation-4: -General description of the project. List of alternative scenarios. Identify Benefits and Costs. Schedule Benefits and Costs. Comparison of alternatives. Sensitivity Analysis.