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Benefit-cost analysis as a net present value problem
Abstract
A discussion attempts to "translate" a benefit-cost analysis (BCA) formula into a workable and easily understandable set of procedures that can be taught to social work students and applied by social work administrators in planning and evaluation situations. Although relatively simple in design, the procedures allow for infinite complexity in range of "accounts" considered, range of "benefits" and "costs" considered within each account, and range of discount rates. Net present value techniques, often used in capital budgeting decisions in business organizations, may provide a pathway toward more widespread use of BCA in human services. The key to such use lies in the recognition of BCA as a problem in net discounted value flows for multiple parties over a specified period of time.
Journal
(1986)
vol10
no3
pages85-97
Categories
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Nonprofit Management
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Financial Planning and Management
