Thursday, September 17, 2009

Cost-Benifit Analysis

  • Used to appraise & assess proposal
  • It's a decision making process

It involves the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option.

Benefits & costs are often expressed in money terms & are adjusted for the time value of money & are expressed on a common basis in terms of their private value.

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