Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Give the Examples of benefit-cost analyses?
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Benefit-cost analysis is a process used by the business to analyze the decisions and to choose the best alternative or decision. We can make a decision for a single project or for the multiple alternatives using the benefit-cost analysis.
In the benefit-cost analysis, the businesses calculated all costs and benefits that are related to the project and then compare all the benefits and costs to decide whether to undertake a project or not.
There are four types of the benefit-cost analysis which are benefit-cost ratio (BCR), incremental benefit-cost ratio, net present value (NPV), and payback period.
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