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Predicting future costs and benefits this way is, in fact, the central task in cost/benefit studies and business case analysis.
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A cost benefit analysis weighs the pros and cons, or benefits and costs, of a project or decision in order to determine its feasibility or to compare alternatives. Cost Test: A standard test applied to a process to determine if the net present value of costs associated with an activity will exceed a benchmark or other limit. In other words, the benefits of a business action or situation can be evaluated with the help of a cost benefit analysis.
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