List three possible problems that could occur when undertaking cost-benefit analysis

What will be an ideal response?

There are many possible problems that could occur when undertaking cost-benefit analysis. For example, usually cost-benefit analysis is undertaken with a project plan already in mind. If enumeration of all the possible options is not undertaken, then we might be overestimating the costs of achieving a particular policy goal. Another problem that could occur comes during the enumeration of costs and benefits stage. It is very easy to double count benefits in a cost-benefit analysis. A third possible problem can come in choosing the discount rate used when obtaining the present value of future costs and benefits. If the wrong discount rate is used in could drastically overstate or understate the future costs and benefits.