Question

In: Economics

The following is not one of the main reasons that makes evaluation of public projects difficult....

The following is not one of the main reasons that makes evaluation of public projects difficult.

A. Public projects are subject to higher values of MARR

B. They often have differences in the impacts and benefits to different members of society

C. They are often motivated by political goals

D. Project lives often very long

Why is public sector economic analysis / evaluation of projects more challenging?

A. Impact on wider society

B. Project Objectives

C. Length of life cycle of projects

D. Determining the value of MARR

E. All the above

Solutions

Expert Solution

Answer 1 - Option C

They are often motivated by political goals

This factor does not play a crucial role in determining the evaluation of the public project. All the rest are crucial for evaluation.

Answer 2 - Option E

All the above

The calculation of cost analysis , the returns , the impact on various sections of the society all the responsible for making the evaluation of the projects challenging.


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