public sector investment – NBC Institute

PSAF – MAY 2019 – L2 – Q5 – Performance Measurement in the Public Sector

Explain cost-benefit analysis, its evaluation methods, and justify its preference as a public project appraisal technique.

Question

The cost-benefit analysis (CBA) has been described as the most popular technique for investment project appraisal in the public sector, especially in the developing world.

Required:

a. Describe the term cost-benefit analysis (CBA). (5 Marks)

b. Identify and explain the two methods usually adopted in the evaluation of projects under CBA. (4 Marks)

c. Justify the preference for CBA as a public project appraisal technique. (6 Marks)

Answer

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Tags: CBA Justification, Cost-benefit analysis, Evaluation Methods, Project Appraisal, public sector investment
Level: Level 2

Topic: Performance Measurement in the Public Sector
Series: MAY 2019

PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles

Evaluate the viability of two local government projects using Pay Back Period and Accounting Rate of Return methods.

Question

Sampolopolo Local Government has identified a vacant land beside its marriage registry building. The director of administration proposed that the land be used either for a cybercafé where the general public can browse, make phone calls, photocopy and carry out other computer services or for the construction of an entertainment event-hall that can be rented out on a commercial basis.
This idea was tabled at the council’s management meeting and unanimously accepted. However, the Finance and General Purposes Committee recommended five years for the project since the council secretariat building will be extended in the future to accommodate more offices for the increased staff strength, and this was approved.

The cost of building the cybercafé and the event-hall with necessary facilities and fittings as well as the expected cash inflows/profits as prepared by the director of administration are as follows:

Required:
As the consultant engaged by Sampolopolo Local Government, advise the Local Government on the more viable project using:
i. Pay Back Period (PBP) (7 Marks)
ii. Accounting Rate of Return (ARR) (13 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Rate of Return (ARR), Financial Analysis, Payback Period, project viability, public sector investment
Level: Level 2

Topic: Government Accounting Concepts and Principles
Series: NOV 2018

PSAF – MAY 2019 – L2 – Q5 – Performance Measurement in the Public Sector

Explain cost-benefit analysis, its evaluation methods, and justify its preference as a public project appraisal technique.

Question

The cost-benefit analysis (CBA) has been described as the most popular technique for investment project appraisal in the public sector, especially in the developing world.

Required:

a. Describe the term cost-benefit analysis (CBA). (5 Marks)

b. Identify and explain the two methods usually adopted in the evaluation of projects under CBA. (4 Marks)

c. Justify the preference for CBA as a public project appraisal technique. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: CBA Justification, Cost-benefit analysis, Evaluation Methods, Project Appraisal, public sector investment
Level: Level 2

Topic: Performance Measurement in the Public Sector
Series: MAY 2019

PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles

Evaluate the viability of two local government projects using Pay Back Period and Accounting Rate of Return methods.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Rate of Return (ARR), Financial Analysis, Payback Period, project viability, public sector investment
Level: Level 2

Topic: Government Accounting Concepts and Principles
Series: NOV 2018

Question Tag: public sector investment

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PSAF – MAY 2019 – L2 – Q5 – Performance Measurement in the Public Sector

Explain cost-benefit analysis, its evaluation methods, and justify its preference as a public project appraisal technique.

PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles

Evaluate the viability of two local government projects using Pay Back Period and Accounting Rate of Return methods.

PSAF – MAY 2019 – L2 – Q5 – Performance Measurement in the Public Sector

Explain cost-benefit analysis, its evaluation methods, and justify its preference as a public project appraisal technique.

PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles

Evaluate the viability of two local government projects using Pay Back Period and Accounting Rate of Return methods.

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Question Tag: public sector investment

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PSAF – MAY 2019 – L2 – Q5 – Performance Measurement in the Public Sector

Explain cost-benefit analysis, its evaluation methods, and justify its preference as a public project appraisal technique.

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PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles

Evaluate the viability of two local government projects using Pay Back Period and Accounting Rate of Return methods.

You're reporting an error for "PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles"

PSAF – MAY 2019 – L2 – Q5 – Performance Measurement in the Public Sector

Explain cost-benefit analysis, its evaluation methods, and justify its preference as a public project appraisal technique.

You're reporting an error for "PSAF – MAY 2019 – L2 – Q5 – Performance Measurement in the Public Sector"

PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles

Evaluate the viability of two local government projects using Pay Back Period and Accounting Rate of Return methods.

You're reporting an error for "PSAF – Nov 2018 – L2 – Q4 – Government Accounting Concepts and Principles"

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