Cost-Benefit Analysis

Definition
Is a method for measuring, in financial terms, the costs and benefits of an investment project.
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WHo uses this process and why?
The Government when they're considering a Public Project.
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What are private costs?
These are costs that the business making the investment has to accept.
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What do Private Costs include?
Training, Recruitment costs, Marketing Equipment etc
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What are Private Benefits?
Benefits that the Business gains from making an investment.
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What do Private Benefits involve?
Increased Productivity, increased sales, brand values and increased profits.
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What is a Public Cost?
Costs external to the business making the Investment
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Cost-Benefit analysis formula
Social Benefit(Private + Public Benefits) -Social Co
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Other cards in this set

Card 2

Front

WHo uses this process and why?

Back

The Government when they're considering a Public Project.

Card 3

Front

What are private costs?

Back

Preview of the front of card 3

Card 4

Front

What do Private Costs include?

Back

Preview of the front of card 4

Card 5

Front

What are Private Benefits?

Back

Preview of the front of card 5
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