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Example of a benefit-Cost analysis Annual flow of Costs and Benefits (Extremely simplified). Regional Workshop on Economic Valuation of Marine & Coastal Resources PERSGA. Annual Flow of Costs. Total Incremental Benefit. Streams of Net Benefit (before discounting).
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Example of a benefit-Cost analysis Annual flow of Costs and Benefits (Extremely simplified) Regional Workshop on Economic Valuation of Marine & Coastal Resources PERSGA
Sensitivity Analysis • Necessary for a succesful benefit-cost analysis. • Aims to find out how sensitive (vulnerable) is the result to changes in the streams of costs and/or the streams of benefits. • Can be utilized to check the reaction to a certain event or development. • Helps to show the critical points at which the project can become (or stay) feasible or at a loss.