Cost-benefit analysis: utilizing mathematics to optimize economic project decisions
DOI:
https://doi.org/10.56764/hpu2.jos.2025.4.01.48-59- Keywords:
- economic
- decision
- mathematical techniques
- benefits
- costs
Abstract
Cost-Benefit Analysis (CBA) is an essential tool for economic decision-making, providing a systematic way to evaluate the financial value of projects. It employs mathematical techniques to quantify benefits and costs, enabling decision-makers to compare various options. By translating potential gains and expenses into monetary values, CBA identifies projects that yield the highest net benefits. This method allows decision-makers to assess investment feasibility, optimize resource allocation, and prioritize projects based on their economic efficiency. The article emphasizes the importance of mathematical techniques in enhancing informed decision-making during project evaluations. It illustrates how Cost-Benefit Analysis (CBA) contributes to effective economic planning and resource management. By providing a structured framework to quantify benefits and costs, CBA helps decision-makers assess investment feasibility and prioritize projects. This ensures optimal resource allocation and maximizes net benefits, ultimately guiding stakeholders toward economically efficient choices.
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