Cost-Benefit Analysis (CBA) is an evaluation technique used to compare the total costs of a program or project with its benefits, which are reduced to a common metric, usually a monetary unit. Other characteristics of CBA are:

Some of the characteristics are:

- Identification of different scenarios.

- Identification of different costs and benefits.

- Quantifications of costs and benefits.

- Costs and benefits are allocated over a suitable project evaluation period.

- Performance measurements using discounted cash flow techniques.

Explanation:

A cost-benefit analysis is a process by which organizations can analyze decisions, systems or projects, or determine a value for intangibles. The model is built by identifying the benefits of action as well as the associated costs and subtracting the costs from benefits. When completed can be used to develop reasonable conclusions around the convenience of a decision or situation.

It presents the following characteristics:

- Identify a normal without project scenario, and one or multiple 'with project' scenarios.

- It needs to identify the range of economic, social and environmental costs and benefits that might be expected in moving from the 'business as usual' to 'with project' scenarios.

- Quantification of costs and benefits. For the 'traded' costs and benefits, accurate estimates of their monetary value can usually be drawn from capital outlays, operational expenditure and revenue forecasts associated with similar projects.

- Costs and benefits are allocated over a suitable project evaluation period.

- Cost-Benefit Analysis generates performance measurements using discounted cash flow techniques over the life of the project-related costs and benefits.