What is the fundamental premise of Benefit/Cost Analysis? What is the value of this analysis? What are some of the risks?

Finance And Project Management

Assignment 5

1. Net Present Value (NPV) examines financial performance in absolute terms. How does this differ from Benefit/Cost Ratios and Internal Rate of Return (IRR)?
2. Net Present Value requires the computation of a discount rate. Discuss the challenges this presents to an organization.
3. What is the fundamental premise of Benefit/Cost Analysis? What is the value of this analysis? What are some of the risks?