Question

Explain the salient features of a cost benefit analysis for public transport scheme.

Answer 1

Answer:

1. First is the need to identify a 'business as usual' scenario and one or multiple 'with project' scenarios.

2. Secondly, the CBA needs to identify the range of economic, social, and environmental costs and benefits that it may expect in moving from the 'business as usual' to 'with project' scenarios

3. The third is the quantification of costs and benefits.

4. A crucial fourth feature of CBA is that costs and benefits are allocated over a suitable project evaluation period, typically 25 years.

5. Finally, CBA generates performance measurements using discounted cash flow techniques over the life of the project-related costs and benefits. All values are expressed in 'present-day dollars' using a 'discount rate.'

hope it will help you.