cost-benefit analysis

cost-benefit analysis definition - finance
A calculation that totals the benefits of making a capital purchase expenditure or an investment decision, then separately totals the costs of that decision. If the benefits outweigh the costs, then the action makes sense. A government may also do a cost-benefit analysis to determine if a government program or regulation is justified.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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