Analyzing project cost in relation to benefits received is known as?

Cost-Benefit Analysis is the systematic process of comparing the costs of a project or investment with the benefits it yields. This approach helps stakeholders make informed decisions by quantifying the financial implications of undertaking a project and evaluating whether the expected benefits are worth the costs incurred.

In this analytical framework, all costs associated with the project, including direct, indirect, and opportunity costs, are weighed against the expected benefits, such as improved safety, economic growth, or enhanced infrastructure. This method allows decision-makers to justify investments by demonstrating that the benefits justify the expenditures, providing a clear rationale for pursuing or declining a project.

The other options, while related to financial analysis and evaluation in different contexts, do not specifically denote the process of comparing project costs directly with the benefits received. Economic Appraisal generally encompasses broader assessments that may include cost-benefit analysis but also considers various economic factors. Net Present Value is a specific financial calculation that measures the profitability of an investment by considering expected cash flows over time; however, it is not a direct comparison of total project costs and benefits. Safety Evaluation pertains to assessing risks and hazards related to safety rather than the financial aspects of project investments.