QUESTION SIX

(a) Briefly describe each of the following terms as used in project analysis.

(i) Sensitivity analysis

(ii) Switching value

(iii) Choosing among mutually exclusive alternatives

(iv) Domestic resource cost 8 marks

(b) What advantages do discounted measures of project worth have over undiscounted measures? 3 marks

(c) Write one paragraph on each of the following concepts of project in project benefit assessment.

1. Internal Rate of Return 2 marks

2. Cost-Benefit Ration 2 marks

(d) What are the objectives of cost recovery in the analysis of public receipts and expenditure?