What are the foundational principles of cost benefit analysis?

Question

30 Aug 2021

Answer :

Word Count : 298

The cost-benefit analysis compares the costs and benefits of a project and then makes a decision on whether or not to proceed with the project. The project’s costs and benefits are measured in monetary terms after adjusting for the time value of money, thus providing a true picture of the costs and benefits. Net Present Value and Benefit-Cost Ratio are the two most common methods of doing a cost-benefit analysis. The NPV model chooses the ________ ________ _____ ________ _____ _________ ________ __________ ________ ____.
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