Economics · Project Evaluation & CBA
Consider the following statements regarding Cost-Benefit Analysis (CBA): 1. Future costs and benefits are discounted to present value. 2. A higher discount rate gives more weight to future generations. 3. Shadow pricing is used when market prices are distorted. 4. Net Present Value (NPV) > 0 is a criterion for project acceptance. Which of the statements given above are CORRECT?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2, 3 and 4
- 22 and 4 only
- 31, 3 and 4 only✓
- 41 and 3 only
Correct answer
1, 3 and 4 only
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