Cost-benefit analysis is essential to evaluate the economic justification of an investment. It supports decision-making by comparing the expected benefits and costs of an investment. Although risk assessment is also important, analysis with concrete figures is particularly important in decision-making.
A cost-benefit analysis is a critical element in a business case as it assesses the financial viability of the proposed IT-enabled investment. It compares the expected costs of the investment against the anticipated benefits, providing decision-makers with a clear understanding of the potential return on investment (ROI).
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Swallows
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