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Explain Cost or Benefit Analysis

Cost or Benefit Analysis: The Cost-benefit analysis (abbreviated as CBA) is an analytical device for assessing and pros and cons of moving forward with the business proposal.

It is a process by which business decisions are examined. The advantages of a given condition or business-related action are summed up and then the costs related with taking that action are subtracted. Several consultants or analysts also make the model to place a dollar value on intangible items, like the benefits and costs related with living in a certain town. Most of the analysts will as well factor opportunity cost into these equations.

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