The table below shows list of projects community XYZ needs. The direct costs and expected benefits associated with the projects are also presented in the table. Use the table below to answer the questions that follow.

Project

Direct cost

(GH)

Benefit

(GH)

School

1,235

1,320

Clinic

1,460

1,510

Road

1,106

1,610

Water

1,218

1,450

A) Find the opportunity cost of each project.

B) Compute the net benefit of each project using

i. Direct cost.

ii. Opportunity cost.

C) State and explain the project that will be provided based on the results in

i. (Bi).

ii. (Bii).

D) Briefly explain why opportunity cost is better than direct cost in cost-benefit (CBA) analysis.