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PA 581 Benefits-Cost Analysis Discussions 1 Week 3
How do you determine whether a new program should be recommended for creation and funding? Do you approve a program with a favorable rate of return and net present value that exceeds the governmental entity’s internal rate of return? Or, do you approve a program that serves the needs of citizens, but may not create the desired rate of return?  What is a capital budget and how does it differ from an operating budget? What are the main steps/ procedures in preparing the capital budget? Can you find some examples of a capital budget for a governmental entity online and share with us?…