Is the Benefit-cost analysis a decision-making tool for systematically developing useful information about the desirable and undesirable effects of public projects?
Is the Benefit-cost analysis a decision-making tool for systematically developing useful information about the desirable and undesirable effects of public projects?
Investments made by the corporations and the governments are primarily made with the objectives of maximization of wealth and promotion of economic activities, respectively. It is very important for both the corporations as well as the governments to determine the profitability and optimal outcomes associated with their economic decisions related to investments using productive and scarce resources. In order to choose or compare an investment project, the corporations and the governments use various methods of project evaluation in order to assess their subsequent benefits and consequences. One such important method of project evaluation is the benefit-cost analysis.
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