Which item is included among the first four steps to an EA?

Which item is included among the first four steps to an EA?

• A. Identify Objectives, Assumptions, Constraints & Alternatives
• B. Define the project charter and kick-off
• C. Develop a detailed procurement plan
• D. Prepare a final report

Answer: (A)

The foundational step in an Economic Analysis is to establish the decision context by clarifying what you’re trying to achieve, what limits you must work within, and what options you’ll consider. Identifying objectives sets the goal of the analysis, while listing assumptions makes the underlying reasoning explicit. Documenting constraints highlights the boundaries and rules that shape feasible options. Outlining alternatives ensures you have a meaningful set of paths to compare, rather than evaluating a single course of action in isolation. Together, these elements frame the entire EA, guiding what data to collect, what models to run, and how to evaluate costs and benefits. The other activities mentioned—defining the project charter and kicking off, developing a detailed procurement plan, and preparing a final report—are steps that occur later in the process or belong to broader project management and procurement activities. They come after the problem is framed and alternatives are identified, which is why they aren’t part of the first steps in an EA.

The foundational step in an Economic Analysis is to establish the decision context by clarifying what you’re trying to achieve, what limits you must work within, and what options you’ll consider. Identifying objectives sets the goal of the analysis, while listing assumptions makes the underlying reasoning explicit. Documenting constraints highlights the boundaries and rules that shape feasible options. Outlining alternatives ensures you have a meaningful set of paths to compare, rather than evaluating a single course of action in isolation. Together, these elements frame the entire EA, guiding what data to collect, what models to run, and how to evaluate costs and benefits.

The other activities mentioned—defining the project charter and kicking off, developing a detailed procurement plan, and preparing a final report—are steps that occur later in the process or belong to broader project management and procurement activities. They come after the problem is framed and alternatives are identified, which is why they aren’t part of the first steps in an EA.