The cost-benefit analysis is an analytical process businesses use to determine ... a faulty benefit-cost ratio would result from poor cash flow forecasting or an incorrect discount rate. Activities ...

The outcome of the analysis, however, is highly sensitive to the discount rate. When a 3 percent rate is used, government intervention would yield a benefit-cost ratio in excess of 1.0. When a 10 ...

There is a lot of terminology confusion between risk-premium, discount rate, weighted average cost of capital (WACC) and capital asset pricing models (CAPM). In addition, the amount of work ...