1. If all individual B/C ratios of MEAS are less than 1.00, then the preferred option is to “Do Nothing". 2. The concept of individual projects stems from the B/C ratio each project has to offer. Once it is feasible (i.e., BC > 1), MEAS are born.
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- Which of the following DOES NOT agree with the definition/description of B/C ratio? A. B/C ratio can have a value less than 0, but the project is not economically feasible. B. A B/C ratio less than 1 means that the benefits are inferior of the costs. C. If conventional B/C ratio is less than 1, so does the modified B/C ratio. D. If the annual costs = annual benefits, the conventional and modified B/C ratios are equal to 0. E. None of theseA benefit-cost ratio is showing the relationship between the relative costs and benefits of a proposed project, expressed either in monetary or in qualitative terms. TRUE (or) FALSEA community public works project will cost $92,000 and will benefit five different individuals. Individual Individual Benefit ($) Individual Cost ($) 1 4,500 6,000 2 18,500 15,000 3 19,000 17,000 4 30,000 24,000 5 29,000 30,000 Does this project meet the Pareto efficiency improvement criterion? If possible, revise the cost shares to allow the project to meet the Pareto criterion and to pass a referendum. please use excel with formulas
- Based off the calculated conventional benefit-cost ratios (BCRs) for both options (the full-capacity tunnel and the 2 half-capacity tunnels please state whether the recommendation should be to build the full-capacity tunnel now or the first half-capacity tunnel. Make sure to show all mathematical work to get the 2 BCR values.Explain how the viewpoint established before a public sector analysis is started can turn an estimate from being categorized as a disbenefit to a cost, or vice versa.A local government is considering promoting tourism in the city. It will cost$8,000 to develop a plan.111e anticipated annual benefits and costs are as follows:Annual benefits: Increased local income and tax collections $ 125,000Annual support service: Parking lot expansion, restroom. $50,000the patrol car, and street repairIf the city government uses a discount rate of 8% and a study period of fiveyears. is this tourism project justifiable according to the benefit-cost analysis?
- Where is the salvage value placed in a conventional B/C ratio? Why? How is it handled mathematically?In which way(s) is Sen’s (1970) impossibility theorem of project choice superior or inferior to the conventional Cost-Benefit Analysis principles of project choice based on the Hicks-Kaldor compensation test. Following the discovery and production of oil in commercial quantities in Ghana, the government of Ghana in collaboration with other stakeholders in the oil industry endeavors to establish a fertilizer production plant in Takoradi to take advantage of the by-product from crude oil production. As a potential Cost Benefit Analyst, list all the possible benefits and costs associated with the fertilizer plant project; direct, indirect, tangible and intangible, pecuniary and non-pecuniary.Which statement(s) is (are) TRUE in the context of urban development? Group of answer choices The per capita environmental footprint (impact) of living in ‘high density’ areas is typically higher than living in ‘low density’ areas when all the infrastructure (electricity networks, water, gas, road, etc) are considered. Transportation subsidies may promote higher than optimal commuting distances. Public transport subsidies are an effective way to tackle urban sprawl. The key reason for imposing developer charges (or development impact fees) is to offset the environmental impact costs of the development.
- The implementation phase of the project cycle primarily involves the commitment of funds into the project. Identify and explain four sources of funding a public rail transport project. Carefully distinguish between Pareto Optimality and Pareto Improvement as used in welfare economics. Most project analysts assert that the identification phase is perhaps the most important phase of a project cycle. With the help of practical example(s), explain how a project could be identified via the market.Which of the following statements is FALSE? In a crowdfunding campaign, an important objective is to figure out the absolute minimum amount that is enough for you to move forward A key characteristic of best crowding campaigns is that the product is usually in prototype phase Equity crowdfunding has high levels of information asymmetries Equity crowdfunding is best for local projects that benefit a community Reward crowdfunding is best for consumer-facing productsWhich of the following DOES NOT agree with the definition/description of Benefit-Cost ratio?A. Benefit-Cost ratio can have a value less than 0, but the project is not economically feasible.B. A Benefit-Cost ratio less than 1 means that the benefits are inferior of the costs.C. If conventional Benefit-Cost ratio is less than 1, so does the modified Benefit-Cost ratio.D. If the annual costs = annual benefits, the conventional and modified Benefit-Cost ratios are equal to 0.