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About Econ311: Public Finance Policy and Practice, Lecture Notes 2013 Public Expenditure Appraisal Project Appraisal
1. Cost-benefit analysis is used to evaluate public projects by comparing their total social costs and benefits. 2. It considers all relevant costs and benefits to society regardless of who bears the costs or receives the benefits. 3. Two key measures used in cost-benefit analysis are net present value (NPV), which is the present value of benefits minus costs, and internal rate of return (IRR), which is the discount rate that results in an NPV of zero. Projects with a positive NPV or IRR higher than the opportunity cost of capital are generally recommended.
Detailed Information
| Author: | ['Tinotenda Muzavazi'] |
|---|---|
| Publication Year: | 2019 |
| Pages: | 21 |
| Language: | English |
| Format: | |
| Price: | FREE |
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