COST BENEFIT ANALYSIS 2
Cost Benefit Analysis
One of the most effective tools for project evaluation is cost benefit analysis. It is
applicable in any project, but especially when the available resources are limited and require
proper allocation across the various sectors (Grant, 2016). In such cases, increasing investment in
one sector leads to inadequacy in the other section of the project implementation. As such, cost
benefit analysis is used because it enables the project implementation and management crew to
ensure that allocation of limited resources is done according to the requirements of each of the
sections.
Cost benefit analysis is also preferred in any evidence-based research project because it
prevents possibilities of investments going in sections that are less beneficial. It also minimizes
the possibility of losing potential benefits that would have otherwise been reaped from the
project (Molinos-Senante, Hernández-Sancho, & Sala-Garrido, 2011). As such, the cost benefit
analysis enables the cost benefit of the project under implementation to be studied, analyzed, and
evaluated in terms of the required resources and the expected outcome of the project in terms of
effectiveness. It allows the project management team to analyze the possible benefit when
investing in the project. The project is accepted if the analysis shows that it is adequate or
satisfactory; else it is rejected.
Cost benefit analysis is also preferred because of its ability to measure the monetary
value of the project and incorporation of social responsibilities in the sections in which it is
applied. In this case, it allows one to consider the social benefits of the project (Phillips &
Phillips, 2016). For instance, its application in the implementation of CAUTI interventions
allows the team to evaluate the efficiency and health impacts that the intervention has on the
