LILL

Which of the following is an essential part of making a rational choice?

O

A. Evening out utilities.

O

B. Balancing financial and non-financial goals.

O

C. Conducting a cost-benefit analysis.

O

D. Calculating monetary values.

C. conducting a cost-benefit analysis

C. Conducting a cost-benefit analysis.

Explanation:

Cost-benefit analysis is a technique used to evaluate investment programs or projects, which consists in comparing Costs with the benefits associated with the realization of the project. A project will be well aspected if the benefits exceed the Costs. The benefits can be monetary or social, direct or indirect.

In another sense it is an instrument to formulate and evaluate projects, it deals with the Costs and benefits of a plan, quantifying both in monetary and social terms, direct or indirect, in order that the benefits are greater than the Costs. The methods that are used most frequently in this type of analysis are: internal rate of return, net and current value, and cost-efficiency analysis.