Direct benefits of the project;
The direct benefit of the project is the output of the project itself, which is provided by its output. The economic value of the output calculated by applying the shadow price is the benefit obtained by the project itself directly increasing the sales volume and labor volume.
The determination of the direct benefit of the project can be divided into the following two situations:
(1) When the output of the project is used to increase the supply in the domestic market, the income of the project is the domestic demand it meets, which can be determined by consumers' willingness to pay.
(2) When the total supply in the domestic market remains unchanged, when the output of the project increases the export volume, the benefit of the project is the foreign exchange obtained from its export; When the output of the project can replace imports, the total import volume is reduced for the country, and the benefit of the project is to replace the foreign exchange saved by imports; When the output of the project replaces the output of the original project, resulting in the reduction of the output of the original project, the income of the project is the resources released to the society by the reduction of the output of the original project, and its value is equal to the willingness to pay of these resources.
Direct cost of the project:
The direct cost of the project is the economic value of various resources (fixed assets investment, working capital and recurrent investment, etc.). ) Projects invested by the state for construction, production and operation are calculated at shadow prices.
The determination of the direct cost of the project can be divided into the following two situations:
(1) When the input required for the project comes from the increase of domestic supply (that is, by increasing domestic production to meet the needs of the project), the cost of the project is to increase the value of resources consumed by domestic production.
(2) When the total supply in the domestic market remains unchanged, when the project investors rely on imports from the international market to meet the demand, the cost of the project is the foreign exchange spent on imported inputs; When the input of the project is exportable resources (that is, to meet the needs of the project by reducing exports), the cost of the project is the reduced foreign exchange income by reducing exports.
When the input of one project is the resources applied to other projects (that is, to meet the demand of this project by reducing the input of other projects), the cost of this project is the income reduced by reducing the input of other projects, that is, the willingness of other projects to pay for this input.