Economic appraisal is a method of capital budgeting that uses discounted cash flow techniques to determine the preferred investment by discounting the expected annual economic costs and benefits over the project's life. This method is particularly used for assessing governmental or quasi-governmental projects such as road, railway, and port developments.
A cognitive bias that leads individuals to be overly optimistic about the outcomes of their actions, frequently resulting in underestimation of risks, costs, and duration, while overestimating benefits.
A Private Finance Initiative (PFI) is a way of funding public infrastructure projects with private capital, typically structured under long-term contracts between the public and private sectors.
Public works are government projects designed for the public good and financed by public revenues. These projects include the construction of infrastructures such as dams, highways, schools, and government buildings.
