1. How should the following items be dealt with in CBA: land capital items such as plant...

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Finance

1. How should the following items be dealt with in CBA:
land
capital items such as plant and equipment
financing expenses associated with the project
depreciation of plant and equipment
allowances for bad debts
working capital
salvage value
external benefits and costs
2. Which methods are used to compare projects at different timeframes?
3. What are the strengths and weaknesses of each of the criteria(NPVs, benefit/cost ratio, internal rates of return, net terminalvalues) that use discounted net social benefits?
4. What is the usual practice followed by CBA researchers whenreporting their results in terms on discounted NSBs?
Notice: please answer each question brief and clear.

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4.1 Ratings (616 Votes)

1a The appreciation in the land price over the years should be considered as a benefit b The financing expenses associated with the project should be considered as cost c Depreciation of plant is See Answer

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1. How should the following items be dealt with in CBA:landcapital items such as plant and equipmentfinancing expenses associated with the projectdepreciation of plant and equipmentallowances for bad debtsworking capitalsalvage valueexternal benefits and costs2. Which methods are used to compare projects at different timeframes?3. What are the strengths and weaknesses of each of the criteria(NPVs, benefit/cost ratio, internal rates of return, net terminalvalues) that use discounted net social benefits?4. What is the usual practice followed by CBA researchers whenreporting their results in terms on discounted NSBs?Notice: please answer each question brief and clear.