Why is setting a discount rate important in the context of a cost benefit analysis? How...

Why is setting a discount rate important in the context of a cost benefit analysis? How do we know if the discount rate we use is appropriate?

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Rahul Sunny answered 1 year ago

Why is setting a discount rate important in the context of a cost benefit analysis?

Why is the choice of social discount rate important in cost-benefit analysis? Critically examine when it...

Why is the choice of social discount rate important in cost-benefit analysis? Critically examine when it is most appropriate to use the (1) Social Opportunity Cost of Capital, (2) Social Rate of Time Preference, and (3) Ramsey approach for discounting in Cost- Benefit Analysis.

What is the social discount rate? Explain why the social discount rate used in a benefit-cost...

What is the social discount rate? Explain why the social discount rate used in a benefit-cost analysis can have a large impact on the study’s conclusions. Discuss your answers in the context of a carbon tax.

Some have argued that in use for Cost-Benefit Analysis, a higher discount rate is ‘unfair’ to...

Some have argued that in use for Cost-Benefit Analysis, a higher discount rate is ‘unfair’ to future generations. Explain why this is not necessarily the case. Give an example to demonstrate.

Who are the winners and losers of choosing a high discount rate when doing cost-benefit analysis?

how does cost benefit analysis differ from cost effectiveness analysis? why has cost effectiveness analysis become...

how does cost benefit analysis differ from cost effectiveness analysis? why has cost effectiveness analysis become the method of choice in health economists around the world

In the context of benefit – cost analysis what criteria can be used to classify benefits...

In the context of benefit – cost analysis what criteria can be used to classify benefits on one hand and costs on the other hand?

Explain Discount rate, why it is important and its advantages?

The following questions and cases deal with the subject of cost-benefit analysis of internal control. Some important concepts in cost-benefit analysis are as follows

The following questions and cases deal with the subject of cost-benefit analysis of internal control. Some important concepts in cost-benefit analysis are as follows:1. Measurable benefit. Benefits or cost savings may be measured directly or may be based on estimates of expected value. An expected loss is an estimate of the amount of a probable loss multiplied by the frequency or probability of the loss-causing event.A measurable benefit can arise from the reduction of an expected loss.2. Qualitative benefit. Some...

What is Cost-Benefit Analysis? Why is it hard to do?

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