Cost-benefit analysis (CBA) is a set of methods and procedures for evaluating a project or investment. It includes cost quantification and project/investment profit estimation. Costs and are evaluated against predetermined goals.
CBA’s actions include:
- Determination and monetary valuation of all possible consequences (financial, social, environmental, etc.)
- Determination of project costs and benefits.
- Examining the results (net benefits)
- Concluding whether the project is desirable and worth planning