COST BENEFIT ANALYSIS; Cost benefit analysis; the basic questions asked in a cost-benefit analysis are, "Do the economic benefits of providing this service outweigh the economic costs" and "Is it worth doing at all"? One important tool of cost-benefit analysis is the benefit-to-costs ratio, which is the total monetary cost of the benefits or outcomes divided by the total monetary costs of obtaining them. Another tool for comparison in cost-benefit analysis is the net rate of return, which are basically total costs minus the total value of benefits. The idea behind cost-benefit analysis is simple: if all inputs and outcomes of a proposed alternative can be reduced to a common unit of impact, they can be aggregated and compared. The input used to develop the project should be lower compared to the outcomes generated.
Posted on: Fri, 23 Aug 2013 04:57:17 +0000
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