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Question:
(a) Describe cost benefit analysis as used to appraise large public sector investments.
(b) Compare and contrast cost benefit analysis with investment appraisal.
(c) Explain what you understand by the term following terms in the context of cost benefit analysis.
i. Shadow price ii. Social opportunity costs of capital iii. Social time preference rate
(d) What are the difficulties that occur in cost- benefit analysis that are not apparent in ordinary investment projects?
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