Investment Analysis

Foundation for Measuring Investment

Question

Which of the following analysis provides a foundation for measuring investment of time, money and human resources required to achieve a particular outcome?

Answers

Explanations

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A. B. C. D.

C.

The correct answer is B. Cost-benefit analysis.

A cost-benefit analysis (CBA) is a process of comparing the costs and benefits of a project or initiative to determine its economic feasibility. It's a useful tool for decision-making in both the public and private sectors, providing a foundation for measuring the investment of time, money, and human resources required to achieve a particular outcome.

A cost-benefit analysis involves the following steps:

  1. Identify the objectives of the project or initiative.
  2. Determine the costs associated with the project or initiative.
  3. Determine the benefits of the project or initiative.
  4. Quantify the costs and benefits in monetary terms.
  5. Compare the costs and benefits to determine the economic feasibility of the project or initiative.

A vulnerability analysis is a process of identifying and assessing vulnerabilities in a system or organization. It is not directly related to measuring the investment required to achieve a particular outcome.

A gap analysis is a process of comparing the current state of a system or organization to a desired future state, identifying gaps between the two, and determining how to bridge those gaps. While it can help identify areas where investment may be needed, it does not directly provide a foundation for measuring the investment required.

A requirement analysis is a process of determining the needs of a system or organization and identifying the requirements that must be met to satisfy those needs. While it can help identify the resources required to achieve a particular outcome, it does not provide a foundation for measuring the investment required.