Generation of capital projects in the public sector, Financial Management

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Question:

(a) In the Strategic Planning Model, describe the various stages involved in the generation of capital projects in the public sector.

(b) Outline the life cycle-costs of public infra-structures and discuss why knowledge of the behaviour of such costs is important in capital budgeting in the public sector.

(c) Show the philosophical difference between the Pay-As-You-Go and Pay-As-You-Use method of financing public infra structures.

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