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In Cost-Benefit Analysis Associated with Public Projects, All Costs and Benefits

question 16

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In cost-benefit analysis associated with public projects, all costs and benefits should be evaluated in terms of


Definitions:

Replacement Cost

The cost to replace an asset with another of similar quality and functionality at current market prices.

Cost Of Completion

the estimated total expense required to finish a project, product, or service, often used in budgeting and financial projection.

Normal Profit

The minimum profit necessary for a company to remain competitive in its market, covering its opportunity costs.

Replacement Cost

The cost required to replace an asset with a new one of similar kind and quality at current prices.

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