UK CBA & investment on construction projects

UK CBA INVESTMENT ON CONSTRUCTION PROJECTS

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Especially for public works and infrastructure projects by the government , economic cost-benefit analysis plays an important role for many reasons . Traditional cost-benefit analysis that are made by finance and accounting trained individuals take into consideration monetary costs versus monetary benefits -- or profits -- into the situation However , economic cost-benefit analysis , although taking these factors into consideration , is used for public works because it takes two additional factors into consideration in competition . The first are the

nonmonetary opportunity costs that are generated by the project Opportunity costs , although sometimes ssential in financial transactions , because of the wide availability of technology in to assist financial transactions which effectively remove search in transaction costs , infrastructure and construction projects have opportunity costs -- both positive and negative externalities -- that must be taken into consideration ADDIN ZOTERO_ITEM "citationItems :[ "itemID :12778 ] (Begg et al . 2008 . Also , the accomplishment of public Works could not be made instantaneously , and there is a time factor involved in the process . In such time factors and their costs to society , economic cost-benefit analysis uses theory of discounting in net present value which in to determine the actual costs in prison terms rather than the future turns the project . Also such cost-benefit methods take into consideration other inputs such as the willingness to pay a willingness to accept of individuals , the travel costs , and even the cost of health of such projects ADDIN ZOTERO_ITEM...