Question

(a) Write down 5 projects you think will lend themselves well to a Cost Benefit Analysis. Include for each of them, reasons as to why you believe they can be properly analyzed.
(b) Write down 5 projects you think do not lend themselves to a Cost Benefit Analysis. Include for each of them, reasons as to why you believe they can not be properly analyzed (e.g. the scope is too broad, information is hard/impossible to obtain, they are technologically infeasible, etc).
(c) Among the projects in part a, choose the one you would be most excited to work on and explain why.
(d) Among the projects in part b, choose the one you would be least excited to work on and explain why.

Answer 1

Answer:

A)

Food chain project, Tech startup, Road construction , expansion of clothing line, construction of dams

B)

Investment in stocks,  National economic planning , Railway construction , Employee housing,  Investment in Insurance

C)  The food chain project

D) Investment in stocks

Explanation:

A) 5 projects that will lend themselves well to a cost benefit analysis

• Food chain project ; A food chain project can lend itself properly to cost benefit analysis, The owner or Financier of the project can estimate  the exact costs to be incurred in adding various delicacies to the Food chain project and he can also evaluate the revenue that each delicacy can generate at a given time based on the demand hence cost benefit analysis can be applied here
• A tech startup : A tech startup can effectively implement cost benefit analysis by evaluating the cost of employing programmers based on their input and the revenue expected to be generated from the Tech startup products.
• Road construction project : A road construction project is usually broken down into different project phases and this phases help the project coordinator to have an overview of the cost benefit of the project.
• Expansion of a clothing line : In The expansion of a clothing line Cost Benefit Analysis can be applied, I.e. the cost of setting up clothing stores in various regions will be calculated first and then the expected profits from those outlets can be determine within a  period
• construction of dams : The cost benefit analysis will compare the cost of building and the benefit / revenue to be generated in the long run

B)  5 projects that do not lend themselves to cost benefit analysis

• Investment in stocks : The cost benefit analysis cannot be properly carried out in this can of project because some uncertainties associated with stocks
• National economic planning project; Cost benefit analysis can not be properly implemented her because the sole aim of National economic planning is to sustain the economy and some uncertainties can erupt which was not included in the economic plan
• Railway project : Due to the terrain of some areas the exact cost benefit analysis can not be properly implemented and also the scope of railway construction is broad in general.
• Employee housing project : Cost benefit analysis cannot be implemented here because the housing project does not benefit the company that owns the building but just the employees
• Investment in Insurance : The cost benefit analysis can not be properly implemented due to the uncertainties that life brings

C) In part A The best project for me  is

The food chain project and this is due to is simplicity in analysis via the cost benefit analysis

D) In part B the Least project for me is

Investment in stocks and this is due to the Volatility and uncertainty surrounding stock investment and trading