When evaluating proposals for building a new sewage treatment plant,a cost-benefit analysis does not have to include the cost of the land if it is to be donated.
The analysis should include the opportunity cost related to the value the land would have in its next best use.

Question

Quizplus · Accepted Answer

Even if the land is donated, a comprehensive cost-benefit analysis should include the opportunity cost of not using the land for its next best alternative use, as this represents a real cost to the community or organization.

When Evaluating Proposals for Building a New Sewage Treatment Plant,a