Review:
Cost Benefit Analysis
overall review score: 4.5
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score is between 0 and 5
Cost-benefit analysis is a systematic approach to evaluating the costs and benefits of a proposed project or decision, with the goal of determining whether the benefits outweigh the costs.
Key Features
- Quantitative analysis
- Time value of money
- Risk assessment
- Trade-off analysis
Pros
- Helps in decision-making by providing a structured framework for assessing projects or policies
- Allows comparison of alternatives based on their costs and benefits
- Helps in allocating resources efficiently by focusing on maximizing benefits
Cons
- Subjectivity in assigning monetary values to intangible factors
- May not always capture all relevant costs or benefits
- Can be time-consuming and resource-intensive to conduct