If a project creates direct net benefits such as increased business profit and an improved consumer surplus, then any gain in asset value associated with the extra income should becounted as part of the total generated benefits.

Question

Quizplus · Accepted Answer

If a project creates direct net benefits such as increased business profit and an improved consumer surplus, then any gain in asset value associated with the extra income should not be counted. Such a practice is counting same benefit twice, and causes a biased CBA evaluation.

If a Project Creates Direct Net Benefits Such as Increased