Cost-benefit analysis is used to determine the desirability of investing in a project (such as a dam, factory, or public park) by figuring whether its present and future economic benefits outweigh its present and future economic costs.

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Cost-benefit analysis is a systematic approach to estimating the strengths and weaknesses of alternatives used to determine options that provide the best approach to achieve benefits while preserving savings. It is used in economics and business to compare the expected costs of a project against its expected benefits, allowing decision-makers to choose the most beneficial and cost-effective option.

Cost-Benefit Analysis Is Used to Determine the Desirability of Investing