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Correct option for cost-benefit analysis?
1) Sensitivity analysis is only necessary in cost-effectiveness analysis but not in cost-benefit analysis.
2) By conducting a survey to ask people "how much are you willing to pay to increase one year of your life", we can get an estimate of human lives in dollars. This is called human capital approach.
3) Quality adjusted life years is one of the best indicators to measure the benefit in a cost-benefit analysis.
4) Measuring internal rate of return (IRR) is one of the applications in cost-benefit analysis when projects involve multiple years of period.
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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