- 15 Marks
PSAF – May 2022 – L2 – SA – Q7 – Public Sector Reforms,
Discuss reasons for divergence between private and public appraisal of projects and explain key differences in cost-benefit and cost-effectiveness analysis.
Question
Investment appraisal is a process of finding out the least possible costs of an investment and the maximum economic benefits, which may accrue from the commitment of resources.
Required:
a. Highlight FOUR reasons for divergence between private and public appraisal of a project. (4 Marks)
b. How does cost-benefit analysis (CBA) differ from cost-effectiveness analysis (CEA)? (5 Marks)
c. Identify THREE procedures and THREE limitations of cost-effectiveness analysis. (6 Marks)
Find Related Questions by Tags, levels, etc.
Report an error