To maximize social welfare

To minimize costs

To maximize profits

To reduce risks

Costs

Benefits

Risks

Equity

Tangible benefits are measurable in monetary terms, while intangible benefits are not.

Tangible benefits are long-term, while intangible benefits are short-term.

Tangible benefits are private, while intangible benefits are public.

Tangible benefits are direct, while intangible benefits are indirect.

Adjusting future costs and benefits to their present value

Ignoring future costs and benefits

Assuming that future costs and benefits are equal to current costs and benefits

Using a higher discount rate for future costs than for future benefits

To test the robustness of the CBA results to changes in assumptions and parameters

To identify the most important factors influencing the CBA results

To determine the optimal level of investment in a project

To evaluate the impact of different policy scenarios

Net Present Value (NPV)

Benefit-Cost Ratio (BCR)

Internal Rate of Return (IRR)

Payback Period

Costs or benefits that are not directly accounted for in the market price of a good or service

Costs or benefits that are directly accounted for in the market price of a good or service

Costs or benefits that are only relevant to the government

Costs or benefits that are only relevant to consumers

By assigning monetary values to externalities and including them in the cost-benefit analysis

By ignoring externalities altogether

By assuming that externalities will cancel each other out

By using a higher discount rate for externalities than for other costs and benefits

Uncertainty and risk are ignored in CBA

Uncertainty and risk are incorporated into CBA through sensitivity analysis

Uncertainty and risk are incorporated into CBA through probabilistic analysis

Uncertainty and risk are incorporated into CBA through Monte Carlo simulation

CBA considers only monetary costs and benefits, while MCA considers both monetary and non-monetary factors.

CBA is used for public projects, while MCA is used for private projects.

CBA is a quantitative technique, while MCA is a qualitative technique.

CBA is more complex than MCA.

Difficulty in assigning monetary values to non-market goods and services

Uncertainty and risk associated with future costs and benefits

Incorporating externalities into the analysis

All of the above

By providing a comprehensive evaluation of the costs and benefits of a project or policy

By identifying the most efficient option among a set of alternatives

By helping decision-makers prioritize projects and policies based on their social welfare impacts

All of the above

The distribution of costs and benefits across different groups in society

The potential for CBA to be used to justify harmful projects or policies

The importance of considering long-term impacts and sustainability

All of the above

By incorporating environmental and social impacts into the analysis

By using a long-term planning horizon

By considering the impacts of a project or policy on future generations

All of the above

The increasing use of non-monetary valuation techniques

The development of new methods for incorporating uncertainty and risk into CBA

The application of CBA to new areas, such as climate change and biodiversity conservation

All of the above