Cost-Benefit Analysis

Description

Cost-Benefit Analysis (CBA) covers a range of topics to help participants understand the principles, methods, and practical applications of CBA. Here’s an overview of the course content you can expect:Introduction to CBA:

Definition and purpose of CBA.Historical context and significance. Key concepts, including opportunity cost and discounting.

Recommendation Selection and Scope:Identifying and defining projects or policies for analysis.Setting clear objectives and boundaries.

Data Collection and Estimation: Gathering relevant data on costs and benefits. Forecasting future costs and benefits. Handling uncertainties and sensitivity analysis.

Discounting and Time Value of Money: Understanding the time preference of money. Discount rates and their determination. Present value and future value calculations.

Monetization of Costs and Benefits: Converting non-monetary impacts into monetary terms. Valuation methods for various types of costs and benefits.

Benefit-Cost Ratio (BCR) and Net Present Value (NPV):Calculating BCR and NPV to assess project feasibility.Interpreting BCR and NPV results.

Sensitivity Analysis and Risk Assessment:Analyzing the impact of parameter changes on CBA outcomes.Assessing and managing risks associated with projects.