Cost and Benefit Analysis Essay Example | Topics and Well Written Essays - 1500 words

Cost and Benefit Analysis - Essay Example However, Lord Heseltine claimed in public forum on 12th November 2013 that though the money to be invested in the project high, the investors should not take account of it. He further indicated that the project was lucrative as it was ‘really imaginative’ and its nominal investment requirement is worth the benefits. Nonetheless, other ministers claimed that if this project would be indeed funded, then it would substantially increase the incidence of taxation on the general taxpayers in Britain. So, they requested to cut down the investment fund of the project by at least 10 billion. They also recommended that the government of the country should try to increase contributions of the private sector in the project. On the contrary, Heseltine claimed that the money invested through huge in the project would bring greater economic growth in the country, as it would augment the overall wellbeing of the northern and southern regions of the nation. He also claimed that with grea t risks come great opportunities and thus, it is highly economic to invest in the concerned project. It was stated by Lord Heseltine that through monetary investment value for the HS2 project was high, it was highly rational to invest such huge amounts in the project; as it was productive and imaginative and could generate large returns in the long run. Even so, the economists always considered monetary benefit and cost analysis to estimate the worth of making an investment. This is because; in the real world, the business operates are subjected to different fluctuations in market conditions generated by internal and external externalities. The economists regard the three above factors to examine cost-benefit analysis of a government project.