Final answer:
A Cost Benefit Analysis (CBA) is used to weigh the expected costs against the expected benefits of a project, decision or policy. This method helps decide the best course of action by evaluating monetary, time, and effort investments relative to the return in terms of improvements or savings.
Step-by-step explanation:
The type of analysis that compares the value of a project’s outcomes with the financial and time expenses of the project is known as a Cost Benefit Analysis (CBA). Direct answer in two lines: A Cost Benefit Analysis compares the potential rewards and costs associated with a project, decision, or policy. Cost Benefit Analysis is a systematic process employed to evaluate the strengths and weaknesses of alternatives. It is used for determining options that provide the best approach to achieve benefits while preserving savings.
A mathematical model can help estimate costs and predict a price for various alternative solutions that emerge during the decision-making process. These models reflect both the direct costs of production and other associated expenses like operation and maintenance. To make an informed decision, one must understand how to perform and interpret the results of a Cost Benefit Analysis accurately.