(Answered) What is not true about cost-benefit analysis1 sensitivity

Engineering

What is not true about cost-benefit analysis?

1) Sensitivity analysis is only necessary in cost-effectiveness analysis but not in cost-benefit analysis.

2) Conducting a survey to ask people "how much are you willing to pay to increase one year of your life", we can get an estimate of human lives in dollars. This is called human capital approach.

3) Quality adjusted life years is one of the best indicators to measure the benefit in a cost-benefit analysis.

4) Measuring internal rate of return (IRR) is one of the applications in cost-benefit analysis when projects involve multiple years of period.

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