sheet programs such as Microsoft Excel. Cost-Benefit Analysis Cost-benefit analysis (CBA) is an important model to decide on whether to proceed with a project. In this method, the pros and cons associated with a project or a policy are listed, given a monetary value, and compared. At times CBA may be carried out for several projects or policies and the outcome compared against other projects. Table 2.3 shows a list of nine steps that a typical CBA should follow [13]. Clearly, a CBA has both qualitative and quantitative concern and parameters, however all parameters need to be translated into monetary terms. This quantitative analysis results in financial metrics, such as NPV and IRR which can be used to evaluate and compare projects. In general, the benefits should be larger than costs for a project to be given the green light. Accuracy of a CBA depends on a number of factors. These include the reliability of future cost and revenue estimates. Another is how well qualitative parameters are monetised. Moreover CBA cannot by itself indicate whether a project will be effective, especially where the outcomes of different projects cannot be determined with a high degree of certainty. Health and defence policies are good examples where outcomes of different policies cannot be easily monetised: it is difficult to determine the value of human life. Other metrics may need to be included to measure the effectiveness of a project in saving lives for example. Yet another measure may be different projects' ability to result in a fair distribution of benefits to general society. A pure financial CBA generally does not yield how the benefits are distributed. Table 2.3 Steps in a cost-benefit analysis Specify the set of alternative projects 2. Decide whose benefits and costs count 3. Catalogue the impacts and select measurement indicators Predict the impacts quantitatively over the life of the project 5. Monetise (attach dollar values to) all projects 6. Discount benefits and costs to obtain present values 7. Calculate the net p