Benefit Cost Analysis

This is mostly ultilised for evaluating public investment projects, because this analysis helps up to find out social desirability of a project. The technique is essentially an extension of NVP and NPVL Instead of considering private commercial profits – Returns and cost-here we are to consider social benefits and social costs; both direct and indirect; real and pecuniary. Thus compararable to NPV, the net present value, we may computer NSR, the net social return from a public project like irrigation or education or electrification etc.



Here, SB stand for social benefit stream, SC stands for social costs and r stand for the social rate of discount.

Note that NSR is a deviation criterion, but NSRI, the index is a ratio criterion. And our precept remains the same. Higher the NSR< better the project. The only problem with this technique is that it is invented by the economists, but used (misused and abused) by the politicians, because the measurement of social benefits and costs may cause more difficulties and very often involved value judgments. Before we end this section, we may note that project evolution or appraisal is a typical fixed investment decisions. The analysis is comparable to make or Buy decisions or Hire Purchase or Lease decision and so on. Sometimes broadly this referred on capital Budgeting. In addition, we make analysis of capital costs, return and risk involved foreign exchange transaction, stock market movement, money trends and government security (Bond) market analysis, then only we can apprehend what goes on in the capital market. Basically, when we talk about such analysis we need to distinguish between capital market (long-term transaction) and money market (short-term transaction). For the time being we refrain from doing further analysis, incorporating both micro and macro aspect.

Services: - Benefit Cost Analysis Homework | Benefit Cost Analysis Homework Help | Benefit Cost Analysis Homework Help Services | Live Benefit Cost Analysis Homework Help | Benefit Cost Analysis Homework Tutors | Online Benefit Cost Analysis Homework Help | Benefit Cost Analysis Tutors | Online Benefit Cost Analysis Tutors | Benefit Cost Analysis Homework Services | Benefit Cost Analysis