Tutorial 8: Cost Benefit Analysis

Cost Benefit Analysis estimates and totals up the equivalent money value of the benefits and costs to the community of the projects to establish whether they are worthwhile. All benefits and costs of a project should be measured in terms of their equivalent money value. By reducing the positive and negative impacts of a project to their equivalent money value Cost Benefits Analysis determines whether on balance the project is worthwhile.
Generally, for a project to be successful, the ROI of the project should be more than 0.5. My group's ROI for this project on the kinetic bicycle is 0.65 thus it would be profitable and safe.

I've learnt the importance of cost benefit analysis as it helps to determine on the justification and feasibility of the project and it also involves comparing the total expected cost of each option against the total expected benefits, to see whether the benefits outweigh the costs, and by how much.