Cost-benefit Analysis (비용편익분석)

* Cost - benefit analysis (비용편익분석)

 

- estimate the strengths and weakness of alternatives that satisfy transcations, activities or functional requirement for the business

투자재원의 한계 내에서 어떤 사업을 선택하는것이 바람직한 것인지 분석

 

- benefits : labor, time and cost-savings

 

- purpose: 1) to determine if it is a sound sound investment/ decision (justification/ feasibility)

2) to provide basis for comparing benefits and costs of a project, decision or policy

 

- costs and benefits are expressed in monetary terms and are adjusted for the time value of money

비용과 편익은 화폐단위로 표현되어야 한다!

 

​- convert all cost and benefit into common currency

→ apply discount rate

→ NPV calculation

→ sensitivity analysis