Cost Benefit Analysis

Elements of Cost Benefit Analysis:

Cost (upfront and on-going) and Benefits (increased revenue and Decreased expences) that defines the ROI


Principle:

Breaks down ROI to a calcualtion set of costs and benefits


Issues:

Exit cost!

Potential benefits!

External environment benefits!


Applications:

Evaluate/justify existing or potential investments


Source of Cost Benefit Analysis:

Henley Business School


Related Models & Sources:

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