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®: CRE Regulatory Action of the Week
OMB Updates Cost Effectiveness Calculation Discount Rate
The Office of Management and Budget has updated the discount rate used in the cost effectiveness calculations required by Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs.
The purpose of the Circular is to “promote efficient resource allocation through well-informed decision-making by the Federal Government.” In addition to proving general guidance for conducting benefit-cost analyses, Circular A-94 also serves “as a checklist of whether an agency has considered and properly dealt with all the elements for sound benefit-cost and cost-effectiveness analyses.”
The Circular applies to a variety of calculations including regulatory impact analysis and benefit-cost or cost-effectiveness analysis of Federal programs or policies as well as to lease-purchase decisions and asset valuation and sale analysis.
See OMB Federal Register Notice
See OMB Circular A-94 Revised
See OMB Circular A-94, Appendix C: Discount Rates for Cost-Effectiveness, Lease-Purchase, and Related Analyses
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