Cost-Benefit Analysis: An analysis of a project which includes a valuation of the total costs and total benefits involved, including private and external costs and private and external benefits. Provides a framework where all the costs and benefits of an investment project can be analysed. Stages: Stage 1 - Identification, identifying all relevant cost and benefits, private/ external costs, private/external benefits. Stage 2- Monetary Value, Putting a monetary vale on all these costs and benefits, including those where a market value can be established and those where not. Stage 3 - Forecasting, Forecasting future based on estimates of future costs and benefits. Stage 4 - Interpretation, compilation of all data combined.