There are a number of assumptions underlying CBA. The first is that individual
welfare can be measured, in terms which can be added together or taken away from each
other to yield an end result. Secondly, it can be calculated in terms of money, which means
that monetary values are taken to reflect social values. Thirdly, social welfare is increased if
the total welfare of the people in society is increased - despite the fact that some people
will be worse off.