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Problem-
a) Discuss the theory of Cost-Benefit Analysis.
b) Discuss the key steps involved in conducting a cost-benefit analysis.
c) Discuss three methods of calculating the discount rate.
Additional Information-
These problem belongs to Economics are about Cost Benefit Analysis, the steps involved in conducting Cost Benefit Analysis and the methods of calculating discount rate. According to the Cost Benefit Analysis, benefits are considered as increase in human wellbeing and cost as referred to as decrease in human wellbeing. The answer discusses the rest of the answers in detail.
Word limits- 400
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"Suppose Y = $200, C = $140, G = $25, x-m = -5, and T = $25. What is Sp? What is I?" Here is the answer:Yd = Y - T | C + Sp = Y - T | Sp = Y - T - C,Sp = Y - C - T = 200 - 25 - 140 = $35,I = Sp + (T - G) + (x-m) = $35 I = $35 + 0 - 5 = $30
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