1,373
26
Essay, 1 pages (250 words)

# All is 1.1 million (equally spread over two

Advertising We'll write a high-quality original custom paper on All is 1.1 million (equally spread over two just for you with a 15% discount for the 1st order

Allthese stages of CBA can be understood with the help of an illustration. Let ustake an example of building a dam for electricity generation. Suppose it takestwo years to build a dam and assume that the cost of construction is 1.

1million (equally spread over two years) and let the cost of maintenance is Rs. 50, 000 for each year. Here, in this case costs (construction and operating) are easily measurable in termsof monetary values, whereas the benefits (recreation and generation ofelectricity) have to be converted into monetary values. Another problem is thatthe costs and benefits in the given table occur at different time periods andhence are not comparable. Using discount rates the costs and benefits can beexpressed in present day rupee value. If the discount rate is 10% per year, then the present value of net benefits would be about Rs.

-509335 and at 5%discount rate they are Rs. 39485. That means that at a discount rate of 10% damshould not be built as the costs exceed benefits, whereas at 5% of discountrate the project appears like a good investment. Table 2. 1   Costs and benefits associated with a Dam- anillustration Year Costs Benefits Total benefits Total costs Net benefits   Construction Operating Recreation Electricity       1 550 0 0 0 0 550 -550 2 550 0 0 0 0 550 -550 3 0 50 50 100 150 50 +100 – – – – – – – – – – – – – – – – 19 0 50 50 100 150 50 +100 20 0 50 50 100 150 50 +100 Source: Kavi K. S.

(Dissemination paper-15)

Thanks for Voting!  The paper "All is 1.1 million (equally spread over two" was written by a real student and voluntarily submitted to this database. You can use this work as a sample in order to gain inspiration or start the research for your own writing. You aren't allowed to use any part of this example without properly citing it first.

If you are the author of this paper and don't want it to be used on EduPony, contact us for its removal.

## Cite this Essay

References

EduPony. (2022) 'All is 1.1 million (equally spread over two'. 26 January.

Reference

EduPony. (2022, January 26). All is 1.1 million (equally spread over two. Retrieved from https://edupony.com/all-is-11-million-equally-spread-over-two/

References

EduPony. 2022. "All is 1.1 million (equally spread over two." January 26, 2022. https://edupony.com/all-is-11-million-equally-spread-over-two/.

1. EduPony. "All is 1.1 million (equally spread over two." January 26, 2022. https://edupony.com/all-is-11-million-equally-spread-over-two/.

Bibliography

EduPony. "All is 1.1 million (equally spread over two." January 26, 2022. https://edupony.com/all-is-11-million-equally-spread-over-two/.

Work Cited

"All is 1.1 million (equally spread over two." EduPony, 26 Jan. 2022, edupony.com/all-is-11-million-equally-spread-over-two/.

Relevant Examples

## Contact EduPony

If you have any suggestions on how to improve All is 1.1 million (equally spread over two, please do not hesitate to contact us. We want to know more: [email protected]