1. Presented below is a cash flow analysis for the renewal of a 94.75-kilometre strip of railway taken from the EU guide on conducting a CBA analysis. Based on this analysis, the CBA concluded that the government would profit from this project. Imagine that you are auditing the CBA and have to decide whether you can give reassurance that your government has made the right decision when undertaking this project. While doing so, you find out that the analysis does not take into consideration the cost of alleviating negative environmental impacts. According to the environmental impact assessment done for the project, the cost of alleviating negative environmental impacts, such as adding noise and vibration barriers, building wildlife overpasses and relocating endangered animals, would add up to 100 million euros. You also realise that land acquisition costs have not been added to the total cost of the project. Your analysis shows that purchasing land for one kilometre of the railway will cost 100 000 euros.
Choose the correct statements from the list:
