The concept of cost-benefit analysis considers both quantitative and qualitative cost and benefit measures to facilitate comparisons between alternatives for sound business decisions. Managers apply the cost-benefit concepts when following the four decision-making steps: (1) discover a problem or need; (2) identify alternate courses of action; (3) prepare a thorough analysis of each possible solution, identifying its total costs, savings, benefits, other financial effects and any qualitative factors; and (4) choose the best alternative.
Provide an example of a business or personal cost-benefit analysis. Be sure to include the four steps above in your analysis. For full credit you need to show the cost, savings, revenue numbers for step 3.