Economic analysis of projects, Business Economics

Economic analysis of projects, Business Economics

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Economic analysis is done from the viewpoint of society or economy as a whole. The evaluation is done from a wider angle not merely in financial terms.
. In 1936, Flood Control Act of 1936 of USA provided that a project should be deemed feasible only if sum-total of benefits to whom-so-ever they may accrue exceeds the estimated costs, highlighting the social nature of investment decision. In UK, this was applied first time in 1917 for evaluating MI Motorway project, and nationalized industries were directed to use SCBA. India is a pioneer in the third world countries and has applied SCBA in appraising projects especially in the public sector.
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