Economic analyses involve a cost$-$benefit analysis in a very similar way to what you did for the financial

assessment. The steps are shown in the flow chart below.

The Social and Environmental Costs and Benefits of a project are usually non$-$tangible$,$ and difficult to

quantify. Where you can try to quantify them, and perform the analyses. Where not possible, discuss some

of the issues you would consider qualitatively.

Do you think your project is an economically sound investment? Comment.

Now using the combined results of the Financial and Economic Analyses, comment on whether your project

is desirable $($this includes financial viability and economic soundness$).$