Description: The cost-benefit analysis model is a fundamental tool in decision-making that allows for the evaluation of a project’s or decision’s viability by comparing its costs and benefits. This model is based on the premise that decisions should be made considering not only the expenses involved but also the expected benefits. Through a quantitative approach, monetary values are assigned to both aspects, facilitating direct comparison. The main characteristics of this model include identifying all relevant costs and benefits, estimating their monetary value, and considering time, as benefits and costs may occur at different moments. The relevance of cost-benefit analysis lies in its ability to provide an objective basis for decision-making, helping managers and stakeholders prioritize projects and allocate resources efficiently. This model is widely used in various fields, including economics, project planning, public policy evaluation, and business management, making it a versatile and essential tool in decision-making and resource allocation.
