Project estimation and cost-benefit analysis (CBA) are tools that help determine if a project is financially feasible and worth pursuing:

 Project estimation and cost-benefit analysis (CBA) are tools that help determine if a project is financially feasible and worth pursuing: 

Project estimation

Involves estimating the future value of a project's costs and benefits, and using cost estimation tools and techniques. 

Cost-benefit analysis

Compares the estimated costs and benefits of a project, and determines if the benefits outweigh the costs. 

Here are some more details about cost-benefit analysis:

Purpose

The main purpose of a CBA is to help companies decide which projects to undertake. 

How it's done

A CBA involves identifying and quantifying all project costs and benefits, and then calculating the difference between the two. The difference is sometimes represented as a ratio. 

What's included

A CBA can include measurable financial metrics, as well as intangible costs and benefits. Intangible costs include lost productivity or reduced customer satisfaction. 

What it can help with

A CBA can help companies avoid losses, and can also help them parse out critical information, such as their value chain or a project's ROI. 

When it's used

A CBA is a data-driven approach that's often used in business, but its basic principles can be applied to any decision-making process.