In: Economics
The Tabora – Mpanda road is a gravel road which is passable with difficulties especially during the rain season. Now the Government plans to upgrade it to a tarmac level. You have been requested to undertake a benefit – cost analysis of this project. Outline the steps you would follow to undertake the exercise. In each step identify the kind of data and information you would require to carry out the exercise.
Tabora-Mpanda Road is passable with difficulties. It is even more severe during rainy season. Now government plans to upgrade it. The cost benefit analysis would be:
Cost involved in the project could be:
Benefits from the project could be:
In this Cost Benefit analysis, if according to authorities Cost > Benefit then the road must not be built otherwise it must be built.