Question: Case #1 Cost Benefit Analysis (30 marks) Most companies do look for ways to make their investment returns positive. For this reason, they do try
Case #1 Cost Benefit Analysis (30 marks) Most companies do look for ways to make their investment returns positive. For this reason, they do try as much as they can to minimize their risks by conducting an exhaustive Cost Benefit Analysis (CBA). However, while some find this technique a long and tedious process, other individuals/companies simply dont know where to start. Question #1. What is a cost benefit analysis (CBA)? Question #2. Is this technique suitable for the small business owner? Question #3. What do you include as the Costs and what do you include as the Benefits? Question #4. How do you treat non-financial costs and benefits? Question #5. How can you be sure that the project is VIABLE? Question #6. Are there any limits to its applicability?
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