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Money · Guided lesson

Separate incremental resources from transfers

About 11 minutes · 3 reading + 8 practice and checks
Time includes reading, practice, and questions. Extra videos or further study are optional.
See this course’s project requirements

A financial appraisal of a fictional community investment with counterfactual, incremental costs, discounted values, distribution and sensitivity.

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • A baseline/project comparison with incremental service and scope.
  • An incremental resource-cost and transfer-incidence table.
  • A dated present-value worksheet with real/nominal consistency.
  • A deduplicated benefit inventory with valuation limits.
  • A base/low net-value table and distribution note.
  • A completed fictional public-spending financial appraisal.

Review and revise

Use these criteria to check your work and choose what to improve.

  • All supplied records reconcile and the decision uses the named case rules.
  • Calculations show units, intermediate values and a second check.
  • Changed-input practice revises the affected result and identifies uncertainty.
  • The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
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Before you begin

The idea in everyday life

This is an original fictional practice case. No account, payment, personal record or outside participation is required. Extension case: new staff time $4,000, materials $1,000, fee transfers from users $800 to operator. Existing room rent $2,000 stays identical with/without project. Values are fictional.

The idea

A social-resource appraisal differs from a funding budget: a transfer moves money between parties and may not be a new resource cost.

Follow along

Separate incremental resources from transfers — worked practice

A social-resource appraisal differs from a funding budget: a transfer moves money between parties and may not be a new resource cost.

Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Extension case: new staff time $4,000, materials $1,000, fee transfers from users $800 to operator. Existing room rent $2,000 stays identical with/without project. Values are fictional.

Resource and transfer classification

Paste at A1.

AItemBUSDCClassification
New staff resources4000Incremental resource
New materials1000Incremental resource
User fee to operator800Transfer
Existing unchanged rent2000Baseline in both scenarios

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  1. 1. Step 1: List changed real resource use

    List changed real resource use.

    You should see: Staff $4,000 and materials $1,000.

    A social-resource appraisal differs from a funding budget: a transfer moves money between parties and may not be a new resource cost.

  2. 2. Step 2: Exclude unchanged rent from the incremental total

    Exclude unchanged rent from the incremental total.

    You should see: $2,000 rent is the same in both scenarios.

    Keep this intermediate result so the final decision can be checked.

  3. 3. Step 3: Classify user fees separately

    Classify user fees separately.

    You should see: $800 is a funding transfer between users/operator, not additional resource consumption by itself.

    Keep this intermediate result so the final decision can be checked.

  4. 4. Step 4: Compute the limited social-resource cost and note distribution

    Compute the limited social-resource cost and note distribution.

    You should see: Incremental resources $5,000; fee incidence still matters for users and the operator’s cash budget.

    Keep this intermediate result so the final decision can be checked.

Now change one thing

Materials increase to $1,400. Incremental resource cost?

Your work

What to finish

An incremental resource-cost and transfer-incidence table.

Common mistake

Watch for this

Treating a funding transfer as a second resource cost without examining scope.

How can I tell I understand it?

Classify changed resources, unchanged costs and funding transfers in a limited public appraisal on the supplied changed case while preserving the stated rule and checking the final record.

Try 3 questions

Quick knowledge check

Answer all 3 questions. Get at least 2 right and the lesson completes automatically.

Not yet passed

You’ll get an explanation for each answer. Signed in? Your results save to your account.

1Incremental labor $2,000 plus materials $500; unchanged rent $1,000: incremental resource subtotal?
2A subsidy transfers cash from one party to another. What should the appraisal distinguish?
3An existing cost increases because of the project. Is it automatically excluded as existing?
0 of 3 answeredApply the lesson to a short question, then review the explanation.
2
Finish this lesson

Pass the check. We’ll save the progress.

Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.

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Tools, templates, and lesson sources

Tools and templates

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Sources and further reading

Explore the references behind this lesson.

EPA — Guidelines for Preparing Economic Analyses, 3rd Edition
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

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