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The process of attaching a monetary value to all costs and benefits for comparison.

Cost-Benefit Analysis (CBA) is a systematic process for calculating and comparing benefits and costs of a project, decision or government policy.

Includes recognizing all costs associated with a project, such as initial investment, operating costs, and opportunity costs.

The timeframe over which costs and benefits are assessed, and the discount rate used to calculate the present value of future cash flows.

Involves determining all the positive outcomes from a project, like revenue, environmental improvements, and social gains.

A financial metric used to assess the profitability of an investment or project, calculated by discounting future cash flows to their present value.

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

The cost of foregone alternatives when one option is chosen over another.

The cost of producing one additional unit of a good or service.

A process of assigning monetary value to non-marketed goods such as clean air and water, which are usually public goods.

A method used to compare the relative costs and outcomes (effects) of two or more courses of action.

The discount rate used in CBA to account for the fact that benefits and costs may occur at different times, typically reflecting society's preference for current consumption over future consumption.

The additional benefit received from the consumption of one more unit of a good or service.

Costs or benefits that affect a party who did not choose to incur those costs or benefits.

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

The process used to determine when your business will be able to cover all its expenses and begin to make a profit.

A model that identifies price factors according to the premise that price is determined both by internal characteristics of the good being sold and external factors affecting it.

A ratio comparing the present value of benefits to the present value of costs. Used to evaluate the overall value of a project.

A method for estimating economic use values associated with ecosystems or sites that people visit, based on the time and travel cost expenses that the visitors incur.