Benefits of conducting a cost and benefit analysis, Financial Management

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Question 1:

i) What is meant by Cost and Benefit Analysis? Illustrate your answer with the use of empirical and hypothetical examples.

ii) What are the benefits of conducting a Cost and Benefit Analysis?

iii) Suppose the government wants to build a hospital. What are the problems that it may encounter while performing a Cost and Benefit Analysis?

Question 2:

i) Briefly explain the key macroeconomic aims of a government in a mixed economy.

ii) Consider the difficulties facing a government to achieve these aims simultaneously.


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