Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 1 decade ago

If you want to review a project from a benefit-cost perspective, you should use the _______ method of analysis?

2 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    profitability index

  • Anonymous
    1 decade ago

    Incremental method.

    "A benefit-cost analysis is a systematic evaluation of the economic advantages (benefits) and disadvantages (costs) of a set of investment alternatives. Typically, a “Base Case” is compared to one or more Alternatives (which have some significant improvement compared to the Base Case). The analysis evaluates incremental differences between the Base Case and the Alternative(s). In other words, a benefit-cost analysis tries to answer the question: What additional benefits will result if this Alternative is undertaken, and what additional costs are needed to bring it about?"

    Source(s): http://www.oim.dot.state.mn.us/EASS/ ( Unusual source, but it explains it pretty clearly )
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