Which of the following statements is true about the cost-benefit analysis of investments in public projects like education, health, etc.? [Select one]Group of answer choicesCost-benefit analysis of public investments in education and health is not necessary since people sufficiently invest in their health and education by themselves.In order to calculate the net present value of public investment, we should compare the opportunity costs of investments to the present value of future benefits.The cash and opportunity costs of sending children to schools is lower in developing countries than developed countries.In order to calculate the net present value of public investment, we should only worry about the cost that is incurred right now since we are not sure if and when the benefits will materialize.

A cost-benefit analysis (CBA) is a method of calculating the benefits of a choice or action minus…

Answered: Which of the following statements is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following statements is true about the cost-benefit analysis of investments in public projects like education, health, etc.? [Select one]

Group of answer choices

Cost-benefit analysis of public investments in education and health is not necessary since people sufficiently invest in their health and education by themselves.

In order to calculate the net present value of public investment, we should compare the opportunity costs of investments to the present value of future benefits.

The cash and opportunity costs of sending children to schools is lower in developing countries than developed countries.

In order to calculate the net present value of public investment, we should only worry about the cost that is incurred right now since we are not sure if and when the benefits will materialize.

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