What are Some Challenges in Cost Benefit Analysis?
While CBA is a powerful tool, it comes with certain challenges:
Estimating Intangible Benefits: Assigning a monetary value to intangible benefits can be subjective and complex. Uncertain Future Values: Predicting future costs and benefits involves uncertainty. Incorrect assumptions can lead to inaccurate results. Biases: Personal or organizational biases can influence the objectivity of the analysis. Time and Resource Intensive: Conducting a comprehensive CBA can be time-consuming and may require significant resources.