Circular a-94: Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs

Circular a-94: Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs

Circular a-94: Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs is a 22-page legal document that was released by the Executive Office of the President of the United States and used nation-wide.

FAQ

Q: What is Circular A-94?
A: Circular A-94 is a set of guidelines and discount rates issued by the Office of Management and Budget (OMB) to assist in the benefit-cost analysis of federal programs.

Q: What is the purpose of Circular A-94?
A: The purpose of Circular A-94 is to provide uniform guidance to federal agencies for conducting benefit-cost analysis of their programs and to ensure consistency in evaluating the costs and benefits of proposed projects.

Q: Who issues Circular A-94?
A: Circular A-94 is issued by the Office of Management and Budget (OMB), which is part of the Executive Office of the President.

Q: What is benefit-cost analysis?
A: Benefit-cost analysis is a systematic approach to weighing the positive and negative impacts of a project or program, with the goal of determining whether the benefits are worth the costs.

Q: What are discount rates?
A: Discount rates are used in benefit-cost analysis to account for the time value of money. They are used to convert future costs and benefits into present values.

Q: Why are discount rates important in benefit-cost analysis?
A: Discount rates are important in benefit-cost analysis because they allow for the comparison of costs and benefits that occur at different points in time. They reflect the fact that a dollar received in the future is worth less than a dollar received today.

Q: Who uses Circular A-94?
A: Circular A-94 is used by federal agencies when evaluating the costs and benefits of proposed projects or programs. It may also be used by state and local governments, as well as private organizations, as a reference for conducting benefit-cost analysis.

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