"Social Cost and Benefit Analysis of Project has great importance in the Project Planning." Discuss.

Social cost benefit analysis is a systematic and cohesive method to survey all the impacts caused by a project. It comprises not only the financial effects (investment costs, direct benefits like tax and fees, etc), but also the social effects, like: pollution, safety, indirect (labour) market, legal aspects, etc. The main aim of a social cost benefit analysis is to attach a price to as many effects as possible in order to uniformly weigh the abovementioned heterogeneous effects. As a result, these prices reflect the value a society attaches to the caused effects, enabling the decision maker to form a statement about the net social welfare effects of a project. Such analysis calculates direct (primary), indirect (secondary) and external effects of a project and helps in comparing project alternatives and making presentations of uncertainties and risks associated with projects. Hence Social cost benefit analysis is an important tool of project planning.