Cost-benefit analysis

Cost-benefit analysis is a way to decide if it is worth doing something. It looks at how much it will cost to do something (like buying a new item or building a new house) and then compares that to the benefits of doing it (like how much you will enjoy the new item or be able to use the new house). The result of a cost-benefit analysis is a simple number that shows whether the benefits are worth more than the costs. This helps people figure out what the best decision is.