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QUESTION
a) Describe cost benefit analysis as used to appraise large public sector investments
b) Compare as well contrast cost benefit analysis with investment appraisal
c) Explain what you understand by the term following terms in the context of cost benefit analysis
(1) Shadow price
(2) Social opportunity costs of capital
(3) Social time preference rate
d) What are the trouble that occur in cost- benefit analysis that are not apparent in ordinary investment projects?
moral responsibility and blame
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