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Supervisor: neil gershenfeld title: prof of media technology.
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The cost benefit analytic thinking process estimates the benefits and costs of an investing for two reasons: 1.
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What was the result of my stud y thesis?
This thesis is the result of four and a half years of stud y. It has definitely been an exciting and inspirational time. During my Ph.D. I have met a lot of inspiring people and had the privilege of working closely together with some of them. In retrospect, they we re years with a lot of
How are costs and benefits represented in CBA?
In a CBA calculation, costs and benefits are represented as monetary values. Time value of money is an important concept in CBA. While performing a CBA calculation future costs and benefits are converted into present value by using a discount rate. Note that CBA is used for both long term and short term decisions.
How does the time value of money affect a CBA?
In finance, the time value of money concept holds that 1 USD today has a greater value than 1 USD in the future. Therefore, while making a CBA, you need to bear in mind the time value of money. Using a discount rate adjusts the future cash flows to the present day.
Who was the first economist to use CBA?
A French economist and engineer Jules Dupit, who used this tool before in a bridge project, introduced the concept of CBA in his article in 1848. After this date, a famous economist Alfred Marshall structured this approach in his book” Principles of Economics” in 1890.
Last Update: Oct 2021
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