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The integration of financial and economic analysis in project analysis
Author(s) -
Sell Axel
Publication year - 1994
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3380060105
Subject(s) - structuring , scope (computer science) , financial analysis , economic analysis , cash flow , finance , schedule , relevance (law) , business , table (database) , economics , distribution (mathematics) , computer science , mathematical analysis , mathematics , management , agricultural economics , political science , law , data mining , programming language
Economic analysis can be considered as an enlargement of the scope of financial analysis and is best based on the gross financial cash flow schedule. In a properly arranged income distribution table it is possible to split up the economic net benefit of a project into the investor's financial benefit and that of other parties involved, including the state. Multicriterion analysis cannot substitute for cost‐benefit analysis of typical development projects, but it might become a supporting tool to use in structuring decision problems if intangibles are of relevance.