Cost–benefit analysis (CBA) is a systematic approach to estimating the strengths and weaknesses of alternatives that satisfy transactions, activities or functional requirements for a business. It is a technique that is used to determine options that provide the best approach for the adoption and practice in terms of benefits in labour, time and cost savings etc. The CBA is also defined as a systematic process for calculating and comparing benefits and costs of a project, decision or government policy (hereafter, “project”).
Broadly, CBA has two purposes:
To determine if it is a sound investment/decision (justification/feasibility),
To provide a basis for comparing projects. It involves comparing […]