What is the goal of using a cost-benefit analysis in project evaluation?

The goal of using a cost-benefit analysis in project evaluation revolves around assessing the financial viability and profitability of a project by comparing its expected costs to the anticipated benefits. This analytical tool helps stakeholders make informed decisions by quantifying the potential returns from investments against the financial outlay required.

By systematically evaluating the total expected costs and the benefits that the project is likely to generate, decision-makers can determine whether the project will deliver a positive return on investment. This process is vital for identifying whether a project is worth pursuing or if adjustments need to be made to align it more favorably with financial objectives.

In contrast, developing marketing strategies is not the primary focus of cost-benefit analysis, as that falls more into the domain of market research and strategic planning. While efficient resource allocation is an important aspect of project management, it is a broader concept that encompasses more than just the financial aspect covered in cost-benefit analysis. Similarly, measuring market competitiveness relates to analyzing a company's position relative to its competition, which is outside the scope of evaluating specific project profitability.