The cost-benefit analysis involves the appraisal of a project proposal. It aims to determine whether or not a project is worth pursuing, based on a comparison between the potential benefits of a project and the anticipated costs or risks it entails. Cost-benefit analysis helps managers and other decision-makers understand a given decision's cost and expected returns (in monetary terms). It can help them decide whether or not to undertake a proposed activity or choose between different alternatives.
Cost-benefit analysis tools make this analysis more manageable and straightforward, such as graphing various options or presenting data for comparison. `Social Return on Investment analysis is another technique that is somewhat related to cost-benefit research. Although SROI may be associated with CBA to a certain extent, its objectives are quite different. The main aim of SROI is to help an organization make decisions that minimize any negative social or environmental impacts and maximize the positive effects of the company in these areas.