cost benefit analysis

Question 1

cost benefit analysis

Answer 1

decision making tool accounting for the social costs and benefits of a project over time to establish net present value (positive good)

Question 2

positives of CBA vs but

Answer 2

-all private and external costs identified
-value judgements made as to which costs and benefits to include
-monetary value attached
-weights/probs applied
-discount rate used to attain NPV (net present value of costs and benefits)

-identification (have you identified all relevant and value judgement)
-enumeration (difficult to attach monetary value)
appropriate discount rate
-source-bias
-cost
-time