What are the main challenges in conducting a cost-benefit analysis?

What are the main challenges in conducting a cost-benefit analysis?

Some key challenges include accurately estimating costs and benefits, dealing with uncertainty, and considering non-monetary factors.

How do you handle uncertainty in cost-benefit analysis?

Uncertainty can be managed through sensitivity analysis, scenario planning, and using probabilistic models to assess risks.

What non-monetary factors should be considered?

Non-monetary factors may include social impacts, environmental effects, and stakeholder satisfaction, which are often harder to quantify.

Can you give an example of a cost-benefit analysis challenge?

Sure! A common challenge is valuing environmental benefits, like clean air, which can be difficult to express in monetary terms.