Cost-benefit Analysis

Category
General Thinking Tools
Description

“A systematic approach to estimating the strengths and weaknesses of alternatives that satisfy transactions, activities or functional requirements for a business.” (related: net present value — “a measurement of the profitability of an undertaking that is calculated by subtracting the present values of cash outflows (including initial cost) from the present values of cash inflows over a period of time.”, discount rate)

Person
Resource Datasbase
Source

Gabriel Weinberg's Mental Models I Find Repeatedly Useful