Evaluating costs and benefits is essentially what economic analysis requires. To better allocate resources, she first evaluates projects based on their economic viability. The aim is to assess how the program affects well-being. The following questions or difficulties can be addressed through economic analysis: Should the public or private sector undertake the project? What is the financial impact of the project? How to ensure fair and efficient cost recovery? What impact will the project have on the environment? (Segurado et al., 2019) In general, economic analyzes are more uncertain than thermodynamic studies. Every variable in the economic analysis is assumed to have confidence in the above explanations. However, some parameters used in the calculations are ambiguous (Tricase et al., 2018). Sensitivity analysis determines to what extent the final choice is affected by the appropriate uncertainty margins considered for each uncertain variable. A sensitivity analysis is recommended to examine how key future value assumptions such as the cost of money, inflation rate, and fuel prices affect the outcome of the economic analysis. continue…
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
