Use the following scenario to answer the question. A large lending institution is evaluating the long-term pros and cons of building a hydroelectric dam in the Amazon rainforest. First, the lending institution is identifying the appropriate factors and then quantifying them. The factors include, but are not limited to, the direct expenses of building the dam, the lost opportunities from placing a dam on the river, and the profit from the dam. Also included is an analysis of who will be affected by the dam.
-What is the name of the process the lending institution is going through?

Question

Quizplus · Accepted Answer

The lending institution is going through a cost-benefit analysis, which involves identifying and quantifying the costs and benefits of a proposed project or investment. This process helps to determine whether the benefits of the project outweigh its costs and whether it should be pursued.

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