What is the basic model used to create a framework for economic feasibility analysis?
A) the capital budgeting model
B) the cash budgeting model
C) the cost/benefit model
D) All of the above models are used to create a framework.

Question

Quizplus · Accepted Answer

The capital budgeting model is the most commonly used model for economic feasibility analysis. It helps to analyze the potential profitability of a project by evaluating the expected cash flows and comparing them to the required investment. The cash budgeting model is also useful, but it focuses mainly on the cash inflows and outflows of a project rather than its profitability. The cost/benefit model is useful in evaluating the overall benefits of a project, but it may not provide a complete picture of the project's economic feasibility. Therefore, the best choice for creating a framework for economic feasibility analysis is the capital budgeting model.

What Is the Basic Model Used to Create a Framework