What is the impact of time horizon in benefit-cost assessment?

03 April 2020 1 6K Report

what is the impact of time horizon in benefit-cost assessment (BCA) Let's say if we perform BCA for 5 years and BCA for 10 years? Which is preferred and why?

Narendra S. Javadekar

It depends on whether benefits accrued will continue over time horizon.

Benefits in future are always discounted....so you will have to check discount rates and apply them if appropriate.

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