Cost Benefit Analysis - Tool For Allocation of Financial Resources For Major Projects

The judicious selection of investment projects, at the micro and macro level, with recognition of resource constraints and complementary involvement of the private sector, will lead to sustained economic growth, equitable development, poverty reduction and private sector growth. Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the benefits and costs to the community of projects to establish whether they are worthwhile. This research enterprise proposes the study of the advantages of cost-benefit analysis and identify the several major principles that collectively describe the assumption base, objectives, analytical tasks, and merits of this important project assessment methodology.