Transcription of Cost-Benefit Analysis - PDI 2016
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Cost-Benefit Analysis - PDI 2016
Cost-Benefit Analysis Rick Hurley 2 June 2016. PDI Orlando, FL. Definition of Cost-Benefit Analysis (CBA). A structured methodology of forecasting and comparing the anticipated costs and benefits of alternative courses of action in order to identify the most effective manner of achieving a stated goal or objective Purposes of CBA. 1. To determine if a policy or investment decision is feasible ( , do the associated net benefits exceed the associated net costs of a policy or investment decision?). 2. To provide a basis for comparing projects.
Characteristics of Cost-Benefit Analysis • Decision support tool (informs, but does not decide) • Predicts effects of actions under consideration for:
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