Public Appraisal – NBC Institute

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)

Answer

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Tags: Cost-benefit analysis, Private Appraisal, Project evaluation, Public Appraisal, Public Investment
Level: Level 2

Topic: Public Sector Reforms
Series: MAY 2022

Question Tag: Public Appraisal

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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.

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.

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Question Tag: Public Appraisal

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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.

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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.

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