Cost-benefit analysis (CBA), sometimes called benefit-cost analysis (BCA), is a systematic process for calculating and comparing benefits and costs of a project, decision, or government (hereafter in this text, “project”). CBA has two purposes (CaDOT, 2012):
1. Determine if an investment or a decision is sound (justification/feasibility). 2. Provide a basis for comparing projects, which 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.