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ppt semua

# ppt semua

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03/05/2011

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Cost Benefit Analysis
Cost Benefit Analysis
Definition and Purpose
Definition and Purpose
A technique that can be used to evaluate
A technique that can be used to evaluate
government projects and programs
government projects and programs
It encompasses an appraisal of a policy
It encompasses an appraisal of a policy
based on the costs and benefits of the
based on the costs and benefits of the
project
project
It should be performed for each investment
It should be performed for each investment
alternative to enable the evaluation and
alternative to enable the evaluation and
comparison of alternatives
comparison of alternatives
Measurement in the Cost Benefit
Measurement in the Cost Benefit
Analysis
Analysis
1.
1.
Net Present Value
Net Present Value
\ue000
The sum of the present value of each cost and
The sum of the present value of each cost and
other effects of a project
other effects of a project
\ue000
A positive NPV indicates that benefits outweigh the
A positive NPV indicates that benefits outweigh the
costs of a project
costs of a project
4.
4.
Benefit Cost Ratio
Benefit Cost Ratio
\ue000
the ratio obtained by dividing of the sum of the
the ratio obtained by dividing of the sum of the
present value of the benefits by the sum of
present value of the benefits by the sum of
the present value of the costs
the present value of the costs
\ue000
A BCR greater than 1 indicates that the benefits
A BCR greater than 1 indicates that the benefits
outweigh the cost of a project
outweigh the cost of a project
8.
8.
Net Present Value per unit of Investment
Net Present Value per unit of Investment
\ue000
the net present value divided by the present value
the net present value divided by the present value
of a project\u2019s capital cost
of a project\u2019s capital cost

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